The living wage is an unofficial hourly pay rate based on the cost of living.
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On the 24th of October, the Living Wage Foundation announced a 5.3% increase in the London Living Wage.
This means 140,000 Londoners will receive a pay rise.
The London Living Wage will rise from £13.15 to £13.85 per hour.
The country-wide Real Living Wage will also rise from £12 to £12.60 an hour.
What is the London Living Wage?
The living wage is an unofficial hourly pay rate set by the Living Wage Foundation and is the only UK wage scheme based on the cost of living.
Around 3,500 employers in the capital are signed up to the voluntary scheme.
Possible Challenges for Local Businesses
For businesses in Borough Market, implementing the living wage is important, but can also pose a challenge.
Sonia, the Head of Finance at The Old Operating Theatre Museum, said that they as a business believe that paying the living wage “is the right thing to do”. She said that not only is it “good for us”, as the employees, but that it also plays a role in “encouraging new staff” to join the organisation.
Whilst Sonia stresses the importance of paying the wage, she also acknowledges the challenges of meeting rises in line with inflation. “I have to budget for it, and we budget very carefully, and that has been a challenge.”
“It presents a challenge each year, to make sure that we’re on top of it and that we meet it.”
The Impact on Workers
Fellow employee Liz is paid London Living Wage wage, and says that the rise “will make a difference”. “I thought well, that’s going to cover that bill, and that gives me that freedom going forward”.
Liz also acknowledges the challenge of living on the London Living Wage, even after the rise. “At the moment, everything is a struggle. There are always decisions to be made about what you can or can’t spend money on.
“Even me, who’s really lucky and has a job that I love, and I’m glad that we get the living wage, I still really agonise over putting the heating on. I still go to the section of the supermarket that has the bargains and try really hard to budget as much as I can. So even that small increase is going to make a massive difference”.
The Wider Impact of Low Pay
The Living Wage Foundation seeks to provide support for the lowest-paid employees.
Their survey discovered that two-thirds of the lowest-paid Londoners said that earning less than the real living wage was worsening their anxiety levels.
They also found that half of those surveyed have had to resort to using a food bank in the past year.
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HeadlineThe London Living Wage rises by 5.3% – What It Means For Workers
Short HeadlineThe London Living Wage rises by 5.3%
Standfirst140,000 Londoners will receive a pay rise.
On the 24th of October, the Living Wage Foundation announced a 5.3% increase in the London Living Wage.
This means 140,000 Londoners will receive a pay rise.
The London Living Wage will rise from £13.15 to £13.85 per hour.
The country-wide Real Living Wage will also rise from £12 to £12.60 an hour.
What is the London Living Wage?
The living wage is an unofficial hourly pay rate set by the Living Wage Foundation and is the only UK wage scheme based on the cost of living.
Around 3,500 employers in the capital are signed up to the voluntary scheme.
Possible Challenges for Local Businesses
For businesses in Borough Market, implementing the living wage is important, but can also pose a challenge.
Sonia, the Head of Finance at The Old Operating Theatre Museum, said that they as a business believe that paying the living wage “is the right thing to do”. She said that not only is it “good for us”, as the employees, but that it also plays a role in “encouraging new staff” to join the organisation.
Whilst Sonia stresses the importance of paying the wage, she also acknowledges the challenges of meeting rises in line with inflation. “I have to budget for it, and we budget very carefully, and that has been a challenge.”
“It presents a challenge each year, to make sure that we’re on top of it and that we meet it.”
The Impact on Workers
Fellow employee Liz is paid London Living Wage wage, and says that the rise “will make a difference”. “I thought well, that’s going to cover that bill, and that gives me that freedom going forward”.
Liz also acknowledges the challenge of living on the London Living Wage, even after the rise. “At the moment, everything is a struggle. There are always decisions to be made about what you can or can’t spend money on.
“Even me, who’s really lucky and has a job that I love, and I’m glad that we get the living wage, I still really agonise over putting the heating on. I still go to the section of the supermarket that has the bargains and try really hard to budget as much as I can. So even that small increase is going to make a massive difference”.
The Wider Impact of Low Pay
The Living Wage Foundation seeks to provide support for the lowest-paid employees.
Their survey discovered that two-thirds of the lowest-paid Londoners said that earning less than the real living wage was worsening their anxiety levels.
They also found that half of those surveyed have had to resort to using a food bank in the past year.
