An updated ‘Living Wage’ has been announced, which could see tens of thousands of workers get a pay rise of up to £400 per year.
The UK Living Wage rate rose today by 20p to £7.65 per hour, and the London Living Wage rate rose by 25p to £8.80 per hour.
The Living Wage is an independently set hourly rate, which is calculated according to the basic cost of living.
Employers choose to pay the living wage on a voluntary basis.
An independent study examining the business benefits of implementing a Living Wage policy in London found that more than 80% of employers believe it enhanced the quality of work, while absenteeism fell by around 25%.
Rhys Moore, director of the Living Wage Foundation said: “Living Wage Week is about employers taking a lead and tackling the problem of low pay. The Living Wage has become a must have badge of honour for employers. By looking out for the Living Wage badge you can now choose to support businesses that are doing right thing
The number of workers in the UK paid less than the Living Wage has grown in the last year by 400,000 according to KPMG, from an estimated 4.82m to an estimated 5.24m now.