London Living Wage increases to £11.95 as cost of living rises

The London living wage has risen by 90 pence an hour to £11.95, as the cost of living rises.

It represents an 8% increase and means more than 140,000 workers who are employed by firms committed to the Living Wage will see a pay increase.

A full-time Living Wage worker will earn an additional £4,777.50 a year, compared to a worker on the government-set national living wage of £9.50 an hour.

Employees already working under the scheme will see an increase of £1,755 a year.

Over 2,500 London employers are part of the voluntary “real living wage” scheme, which was set up in 2011 by the Living Wage Foundation charity.

The number of real living wage employers has more than doubled in the past two years, with major new names including the Royal Albert Hall and the ExCel Centre joining half of the FTSE 100 companies, including Ikea, Burberry and Lush.

Katherine Chapman, Living Wage Foundation Director, said Britain is facing "unprecedented challenges with the cost-of-living crisis".

"With living costs rising so rapidly, millions are facing an awful 'heat or eat' choice this winter- that’s why a real Living Wage is more vital than ever."

Inflation hit a 40-year-record of 10.1% in July, with wages failing to keep up.

Regular pay, excluding bonuses, grew by 4.7% over the three months to June, the Office for National Statistics (ONS) said.

But workers saw a 3% drop in regular pay terms when inflation was taken into account.

Unison general secretary Christina McAnea said: “Low-paid workers are crying out for help. The government must follow the foundation’s lead and bring forward an increase to the national minimum wage without delay. Waiting until April would be foolish.

“Ensuring everyone is paid at least £15 an hour would be a lifeline for millions barely coping with eyewatering household costs."

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