UK businesses voluntarily paying the Real Living Wage will increase the hourly rate by 5%, benefiting nearly 500,000 workers, while employees receiving the London Living Wage will get a 5.3% boost. In April, low-paid workers saw their pay rise with the increase of National Minimum and National Living Wage rates.
Since 1 April, the National Living Wage has been available to employees over the age of 21, rising from £10.42 to £11.44 annually, with younger workers aged 16-20 receiving the National Minimum Wage. The rate has increased to £8.60 for workers aged 18-20 and to £6.40 for those aged 16-17. The apprentice rate will also increase to £6.40.
Employers failing to pay the correct amount of National Minimum or Living Wages can be fined by HMRC. 200 firms have previously been fined a total of £7m for their failure to pay the correct rates. In contrast, the Real Living Wage is based on the amount of money the Living Wage Foundation charity believes people need to earn but is not a legal requirement, and it is therefore up to businesses to decide whether to pay it.
The Real Living Wage is now worth over £2,262 annually compared to the legal minimum pay in the UK, demonstrating nearly £3.5bn in extra wages since 2011. The Living Wage Foundation charity has confirmed roughly 475,000 employees working for 15,000 firms receive the Real Living Wage. The London living wage has been increased by 70p to £13.85 per hour, whereas the rest of the UK will see a 60p increase, reaching £12.60 per hour. All employers are required to follow the new rates by 1 May 2025
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