"Being paid the higher wage means I can pay to go to college – I’m studying in the evenings to be a computer programmer."
About the Living Wage
What is the Living Wage?
A number
An hourly rate set independently and updated annually.
The Living Wage is a calculated according to the basic cost of living in the UK.
Employers choose to pay the Living Wage on a voluntary basis.
The UK Living Wage is calculated by the Centre for Research in Social Policy. The London Living Wage is calculated by the Greater London Authority.
The Living Wage enjoys cross party support, with public backing from the Prime Minister and the Leader of the Opposition.
Paying the Living Wage is good for business, good for the individual and good for society.
Good for Business
An independent study of the business benefits of implementing a Living Wage policy in London found that more than 80% of employers believe that the Living Wage had enhanced the quality of the work of their staff, while absenteeism had fallen by approximately 25%.
Two thirds of employers reported a significant impact on recruitment and retention within their organisation. 70% of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer.
Following the adoption of the Living Wage PwC found turnover of contractors fell from 4% to 1%.
Good for the Individual
The Living Wage affords people the opportunity to provide for themselves and their families.
75% of employees reported increases in work quality as a result of receiving the Living Wage.
50% of employees felt that the Living Wage had made them more willing to implement changes in their working practices; enabled them to require fewer concessions to effect change; and made them more likely to adopt changes more quickly.
Good for Society
The Living Wage campaign was launched in 2001 by parents in East London, who were frustrated that working two minimum wage jobs left no time for family life.
The causes of poverty are complex and in order to improve lives there should be a package of solutions across policy areas. The Living Wage can be part of the solution. Over 45,000 families have been lifted out of working poverty as a direct result of the Living Wage.
The Rate
The London Living Wage is currently £8.55 per hour.
The figure is set annually by the Greater London Authority and covers all boroughs in Greater London.
You can view the 2011 GLA report which explains how the London figure is calculated here.
The UK Living Wage for outside of London is currently £7.45 per hour.
The figure is set annually by the Centre for Research in Social Policy at Loughborough University.
You can view the report which explains how the UK figure is calculated here.
From November 2012 both Living Wage figures will be announced annually in November of each year.
Living Wage Employers should implement the new rate as soon as possible following the annual announcement and within 6 months.
The Foundation
Living Wage Foundation provides advice, support and accreditation to Living Wage employers
Accredited employers are entitled to a licence to use the Living Wage employer mark.
The accreditation process is simple and is open to employers already paying the living wage, or those committed to an agreed timetable of implementation.
Please see the Our Work page for more information.
