Living Wage Commission Report

The Living Wage Commission has released its first report which provides an analysis of the rise of low pay and working poverty in the UK.

The Living Wage is an hourly wage which is defined as the minimum amount of money required for a person ‘to enjoy a basic, but socially acceptable standard of living’.  The Living Wage rates for 2014 are £8.80 for London and £7.65 for the rest of the UK.  This is higher than the legal UK minimum wage of £6.31 an hour for those aged 21+, £5.03 an hour for those aged between 18 – 20 and £3.72 an hour for those under the age of 18.  According to the report, 5.24 million workers in the UK, or 21% of the workforce, earn less than the Living Wage.

The report also says that prices of ‘everyday’ items have risen faster than high-priced goods, with food costing 44% more than in 2005 and energy prices doubling.  The Commission suggests that a rise in living costs combined with stagnation in wages is causing increasing numbers of low paid workers to depend on debt, food banks and in-work benefits.

The Archbishop of York, John Sentamu who chairs the Commission said:-

‘With the economy showing signs of recovery, employers that can pay a living wage must do so.  They should choose between continuing to make gains on the back of poverty wages, or doing the right thing and paying a fair wage for a hard day’s work’.

For advice in relation to Employment Law please contact Kate Garrett or see our full list of services on our Employment Law page.

Kate Garrett

Solicitor & Head of Employment Team

0121 693 2222 or email Kate
For more information about Kate Garrett, please click here