Living Wage Foundation unveils pay rise, but it could be hobbled by Brexit
Pay should rise across the country to match the cost of living by 3.7 per cent in London and 2.4 per cent nationally – but the government could be forced to cut a rise in workers’ wages thanks to Brexit.
The Living Wage Foundation today released its latest calculations for a real living wage based on living costs. It said wages in London should rise 35p from £9.40 to £9.75 per hour and nationally by 20p from £8.25 to £8.45.
The rise was taken up as policy today by London Mayor Sadiq Khan, Scottish First Minister Nicola Sturgeon and Welsh First Minister Carwyn Jones.
But the government in Westminster’s so-called National Living Wage falls far short of today’s proposed increase, and could actually be revised down in April thanks to Britain’s vote to leave the EU.
A report by the Resolution Foundation suggested the NLW, which is based on median income rather than living costs, could be revised down next year as a result of a post-Brexit vote slowdown in wage growth.
As the LWF notes today, the government’s minimum wage for over 25s is currently 17 per cent lower than the Living Wage proposed today.
Katherine Chapman, Director of the Living Wage Foundation, said:
“Today’s new Living Wage rates bring a welcome pay rise to thousands of workers across the UK.
One in five people earn less than the wage they need to get by. That’s why it’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure their employees earn enough to cover the cost of living.”
The rise was welcomed by Trades Union Congress General Secretary Frances O’Grady, who said:
“It’s great to see another 1,000 employers signing up, but millions of families are still blighted by low pay. Good employers need to pick up the pace and adopt the real Living Wage.
The fight for decent pay won’t be won just by employer goodwill, however. We need strong unions who can negotiate with employers and win fair pay for their members, along with a rise in the government’s minimum wage.”
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3 Responses to “Britain needs a Living Wage rise – but will the Brexit Tories listen?”
Michael WALKER
“One in five people earn less than the wage they need to get by.”
A meaningless piece of fluff. I could have 12 children and be an alcoholic and need £2,000 per week to get by.
Mick
Sounds like another bit of Brexit-bashing to me. Project Fear didn’t die just because a majority of the Public disappointed the Remoaners.
The prognosis for living under Tory rule was EXACTLY the same before the referendum was even a thing!
Mike Stallard
Oh dear.
Round here, in the Fens, the living wage is a dream for a lot of the working class. People who work in factories – we have a lot of them – and out in the fields too indeed get the living wage. But they are not unionised. Which often allows the Agency to grant them just a couple of days’ work a week and to allow the Gang masters to extract a lot of “expenses” from their pay packet which, of course, shows the correct legal amount of pay.
But – hey – these workers are immigrants! And they really despise the plump young white British men they see on the dole, the single mothers in huge council houses living off a lot of money. Especially when such people racially abuse them. In the street.