Today the Chancellor announced:
-
That the National Living Wage will rise to £8.91 from April 2020 - a 2.2% increase - and will be extended to 23-year olds.
-
An exemption to the much-trailed public sector pay freeze (outside the NHS) for the 2.1 million public sector workers earning below a £24,000 median salary, who will see a pay rise next year of at least £250.
-
An additional £1 billion of funding for social care drawn from a local authority funding increase, council tax precept flexibilities and a new £300 million grant.
Responding to these announcements, Laura Gardiner, Director of the Living Wage Foundation, said:
"Despite being smaller than we've become accustomed to, a 19p increase in the 'National Living Wage' should keep Britain on track to hit the target of a minimum wage worth two-thirds of typical pay by the mid-2020s. But it means that the gap between the legal minimum and the real Living Wage of £9.50 per hour is set to grow, with the difference worth almost £1,200 per year for a full-time employee.
"Sticking to the plan of extending the National Living Wage to 23-year-olds is a welcome step that will see a big pay boost for many younger workers who have borne the brunt of this economic crisis.
"Millions of people - including key workers like cleaners, delivery drivers and social care workers - are struggling to keep their heads above water, having faced both the biggest health and the biggest economic risks during this crisis. So protecting lower earners from the public sector pay freeze is welcome, as is further funding for social care - which should be directed towards care workers' pay packets as a top priority. In the longer term, it is employers committing to pay a real Living Wage - the only UK wage rate rooted in everyday needs - who will get us through this crisis."
Notes to Editors:
Living Wage Foundation Media Contacts for interviews and case studies: John Hood - john.hood@livingwage.org.uk" / 07507 173649 or Tom Blin -thomas.Blin@livingwage.org.uk" / 07706 217589
What is the real Living Wage?
The real Living Wage is an hourly rate of pay set independently and updated annually (not the UK government's National Living Wage). It is calculated according to the basic cost of living in the UK, and employers choose to pay the Living Wage on a voluntary basis. According to the Living Wage Foundation, since 2011 the campaign has impacted over 250,000 employees and delivered over £1.3bn extra to some of the lowest paid workers in the UK.
About the Living Wage Foundation
The Living Wage Foundation is the institution at the heart of the independent movement of businesses, organisations and people who believe that a hard day's work should mean a fair day's pay. We recognise and celebrate the leadership shown by the nearly 7,000 Living Wage Employers across the UK who voluntarily commit to ensure their staff earn a real Living Wage that meets the cost of living. We are an initiative of Citizens UK.
Only the real Living Wage is calculated according to the cost of living in the UK and in London. Employers choose to pay this wage on a voluntary basis. The real Living Wage applies to all workers over 18 - in recognition that young people face the same living costs as everyone else. It enjoys cross party support.
The UK Living Wage for outside of London from Monday 9th November is £9.50 per hour. The London Living Wage is £10.85 per hour. These figures are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in the UK and in London.