News Worms
News Worms

United Kingdom living wage increase 'to benefit 150000 workers'

United Kingdom living wage increase 'to benefit 150000 workers'

As a result, London now accounts for nearly 42 per cent of businesses paying the Living Wage in the United Kingdom.

The Living Wage Foundation, which works with the 3,679 employers who pay the independently-calculated rates to their staff, announced that the pay rate has increased by 30p from £8.45 to £8.75 an hour around the UK.

Lidl is lifting hourly wages from £8.45 an hour to £8.75 for all its store staff outside London and £9.75 to £10.20 for workers within the M25.

The foundation said the 2017 increase has been driven by inflation, as well as an increase in rent and transport costs.

In 2015 the supermarket invested £9m into starting to pay its staff the "real" living wage, claiming to become the first supermarket in the United Kingdom to do so.

Over 3,600 employers are signed up to the rates, which are higher than the statutory National Living Wage of £7.50 for over 25-year-olds.

Katherine Chapman, Director of the Living Wage Foundation, said: "Year-on-year, we see organisations and businesses across the United Kingdom embracing the real Living Wage as they recognise that a fair day's pay is not only the right thing so to but can improve the quality of staff's work, reduce absenteeism and increase motivation and retention".

"This is a fantastic achievement and a testament to our work promoting the Scottish Government's fair work agenda and putting equality at the heart of our labour market". The Living Wage Foundation sets two rates, one for London and one for the rest of the country.

By comparison, the real living wage is a flat rate for all age groups. Millions of people are living in poverty despite being part of working households, ' she said.

Before today's announcement Lidl paid market leading rates so the commitment will ensure we continue to be a leading employer in the retail sector.

The Foundation said Heathrow was among 150 organisations to have joined its ranks in recent times - the airport's parent firm agreeing to pay all its workers at least the voluntary rate by 2020.

"Extending the living wage is vital".

TUC general secretary, Frances O'Grady, welcomed the new rate but added: "More companies need to sign up".

John Paul Scally, Managing Director at Lidl Ireland and Northern Ireland said; "At Lidl we are in a fortunate position that the last few years have seen our business go from strength to strength in Northern Ireland".

A full list of accredited Living Wage employers can be found here.


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