London living wage to rise by 6% as low-paid workers struggle

Half a million employees at more than 15,000 companies are to be paid at least £12.60 an hour, after the Living Wage Foundation lifted its recommended minimum rate by 5 per cent.
Those working in London will see pay rise faster, by 6 per cent to £13.85 an hour, the charity said.
The rates compare with the statutory minimum pay for adults aged 21 and older of £11.44 an hour, received by about 1.6 million people. The charity’s “real living wage” is worth £2,262 a year more than the statutory minimum for those outside of London, and £4,700 more for those in the capital.
Half of all FTSE 100 companies have committed to the voluntary pay pledge, as well as companies such as Burberry, Ikea, Lush and Everton Football Club. Despite inflation-busting pay rises in recent years, the number of businesses signing up has more than doubled from 7,713 in 2021 to 15,586. The proportion that are small and medium-sized businesses has increased from 87 per cent in 2021 to 91 per cent of the total this year.
The charity said recent research had found that many of Britain’s 3.7 million low-paid workers were struggling to make ends meet, with 42 per cent having less than £10 left each week after covering essential expenses.
Katherine Chapman, a director the charity, acknowledged that businesses were struggling to manage the impact of rising prices and said she was “encouraged” by the continued rise in employers signing up.
“The real living wage remains the only UK wage rate calculated based on actual living costs, and the new rates will make a massive difference to almost half a million workers who will see their pay increase,” she said.
Employers have up to six months to raise their pay to the new rates. Jean-Sébastien Pelland, executive director of Eland Cables, a cable distributor based in South Yorkshire, said it would backdate the new rate for all affected employees among its 260 workers to the start of October.
“We’re continuing to pay the living wage because it’s the right thing to do. It makes sense both morally and commercially, supporting and retaining the staff that sit at the heart of our business operations,” he said.
The government-appointed Low Pay Commission has estimated that the statutory minimum rate for adults aged 21 needs to rise by 5.8 per cent to £12.10 an hour next April. It is set to hand a higher pay rise to workers aged between 18 and 20 as it reduces the gap between the minimum they receive and the adult rate. The government will confirm if it agrees with both rates at the end of October