London’s Living Wage for poorest paid set to rise to £11.05ph

At least 100,000 of the poorest-paid Londoners are about the get a pay rise, after the Living Wage Foundation announced that the London Living Wage should rise to £11.05 per hour.

On the money: The accredited living wage employer logo

The good news needs to be tempered slightly by the context of how modest the increase is likely to be. The Living Wage Foundation recommendation represents a 20p per hour increase – worth about an extra £7 in a weekly pay packet.

Outside London, the Living Wage is to increase to £9.90 per hour, up from £9.50.

Unlike the Government minimum wage (or “National Living Wage” for over-23s – £8.91 rising to £9.50 in April) the real Living Wage is the only wage rate independently calculated based on rising living costs – including fuel, energy, rent and food.

In London, a full-time worker on the new real Living Wage rate would earn an additional £4,173 a year compared to a worker on the current NLW, and £3,022 more than a worker on next year’s National Living Wage.

The increase in Living Wage rates this year has largely been driven by rising fuel and rent costs.

Marina Ahmad AM: welcome boost

Marina Ahmad, Labour’s London Assembly Economy Spokesperson, welcomed the announcement.

“Coming out of an incredibly difficult 18 months, Londoners on low incomes are now face rising rents, food prices, energy bills and National Insurance contributions.

“Just under 400,000 workers in the capital are also being hit hard by the government’s cut to the Universal Credit uplift.

“This is why I am pleased to see this rise in the London Living Wage, which will provide a welcome boost to the pay packets of around 100,000 Londoners.

“The Living Wage movement has made huge progress over the last 20 years. But I don’t think anyone is shying away from the fact that the campaign remains as important as ever with 700,000 jobs in London still failing to pay a decent wage.”

Among the employers signed up to the London Living Wage scheme is Croydon Council, which also had a policy of insisting that all its suppliers and contractors should pay the London Living Wage.

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News, views and analysis about the people of Croydon, their lives and political times in the diverse and most-populated borough in London. Based in Croydon and edited by Steven Downes. To contact us, please email inside.croydon@btinternet.com
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3 Responses to London’s Living Wage for poorest paid set to rise to £11.05ph

  1. B says:

    Good news and about time,the minimum wage should be,£ 12.00 per hour.

  2. David White says:

    This is hardly a “boost”. It’s a rise of less than 2%. Inflation nationally has been 3.1% over the past 12 months. Also the London Living Wage is paid only to a minority of workers – where their employer has agreed to join the scheme.

    What we need is a proper National Minimum Wage (greatly enhanced from its current levels) which is legally enforceable.

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