Why is the Real Living Wage Integral?

Why is the Real Living Wage Integral?

With the current cost of living crisis, times are tough for UK employees. There is much debate about pay and working conditions as many people are struggling to pay their bills. Charity, The Living Wage Foundation, has suggested an increased ‘Real Minimum Wage’. This is in an effort to raise wages in relation to economic inflation. We are proud to be accredited Living Wage employers here at Excel Payroll Solutions.

Recent Updates

As of 24th October 2023, The Living Wage Foundation announced its suggested rates will increase to £13.15 an hour in London – a £1.20 increase and to £12 an hour for the rest of the UK – a rise of £1.10. These rates should start to roll out by the end of 2023 and employers signed up to the Real Living Wage will have until 1st May 2024 to implement them.

The foundation said the 10% rise reflects “persistently high costs” for low-paid workers. The voluntary rate, which applies to everyone over the age of eighteen, compares to the statutory National Living Wage for over-23s of £10.42 an hour.

Recent research from the Foundation said recent polling of those earning below the recommended amount found 60% had visited a food bank in the past year. Also, 39% of people regularly skipped meals for financial reasons. This is a key reason that payroll and wages should be taken very seriously, as people’s lives are affected by changes to the wage system.

The study also found that more than two million women are paid below the real living wage, the foundation said. This represents 14% of all working women, compared with 1.4 million (9%) men. Overall, 60% of all jobs that pay below the real living wage are held by women.

Accredited Employers

LUSH is one of the leading Living Wage Employers on the UK high street. They are famed for excellent customer service and knowledgeable staff, alongside wonderful smelling products. LUSH has achieved many ethical milestones in terms of how they practice business: they have a fair tax mark; they don’t have zero-hour contracts, and everyone gets paid the same rate regardless of age. Paying the real Living Wage followed on as another important ethical commitment that they have made as a business.

Nationwide also pays the Real Living Wage. They have been an accredited Living Wage Employer and a Principal Partner of the Living Wage Foundation since 2014. They have been paying the real Living Wage to not only all their permanent employees, but also their contingent workforce, to ensure pay parity across the Society. The company also encourages third-party suppliers to pay the recommended amount and to become accredited LW Employers.

And of course, we are accredited Living Wage Employers too.

Employees’ wages are a hugely important part of every business. Making sure they are paid currently and on time is imperative. Especially during touch economic times like the UK just now. So, get some payroll support from an expert team so you can focus on other areas of your business. Get in touch with us today to find out how we can support you.