Real Living Wage increases to £12.60

23/10/2024

The recent increase in the real Living Wage to £12.60 per hour in the UK, including Scotland, marks a significant step towards combating in-work poverty.

This voluntary wage, set by the Living Wage Foundation and based on actual living costs, is higher than the government’s National Living Wage of £11.44 per hour.

Scotland boasts the highest proportion of workers earning the real Living Wage or above in the UK, with nearly 90% of workers aged over 18 receiving this wage.

This achievement reflects a strong commitment to fair work practices and is supported by over 15,000 accredited employers across the UK.

The Scottish Government has played a crucial role in promoting this movement, viewing it as essential for creating a fairer and more prosperous society.

Broader economic factors such as rising housing costs and inadequate social security support continue to strain low-income households.

Katherine Chapman, Living Wage Foundation Director, said: “Low paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices.

“The real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase. 

“It’s a challenging time for businesses too, which is why it is so encouraging to see the Living Wage movement continue to grow at pace.”

The movement for fair wages has gained momentum, with more employers recognising the benefits of paying a living wage.

Companies like IKEA and Bird & Blend Tea Co report improvements in employee wellbeing and reduced turnover, highlighting the positive impact of fair pay on both employees and businesses.

Darren Taylor, Country People and Culture Manager, IKEA UK&IE said: “A business’ success is purely driven by its people, and as a values-driven company, we care about our co-workers and their wellbeing.

“That’s why we’re committed to pay our co-workers a real Living Wage that creates a fairer, inclusive, and healthier standard of living for the many.”

The increase in the real Living Wage reflects a growing recognition among employers of the importance of fair pay in supporting employee wellbeing and business success, providing workers with greater financial security.

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