The new rates for minimum wage compare to the so-called Living Wage of £7.45 (outside London) and £8.55 in the capital. The Living Wage is worked out according to the basic cost of living in the UK, but employers only pay it on a voluntary basis.
The Living Wage Foundation welcomes the work of the Low Pay Commission, which has a difficult task in setting a rate. It is very important to have a statutory floor and ensure nobody sinks below that level.
But we think it's also important to have something more ambitious than a minimum - which is where the Living Wage comes in. The Living Wage is a voluntary rate of pay which employers commit to paying.
It's for employers who decide they can do better and go further than the statutory minimum.
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