Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

National living wageLiving Wage

Living Wage rate increased as number of accredited employers doubles

by Rob Moss 2 Nov 2015
by Rob Moss 2 Nov 2015 Photo: Simon Belcher / Image Broker / REX Shutterstock
Photo: Simon Belcher / Image Broker / REX Shutterstock

The Living Wage Foundation has announced a 5.1% increase in the Living Wage, the voluntary rate that is independently set to reflect the cost of living.

More than 2,000 employers with Living Wage accreditation – which is double the number from one year ago – will pay their staff at least £8.25 per hour, up from the previous rate of £7.85.

The London Living Wage has increased from £9.15 to £9.40, a 2.7% increase.

Minimum and living wage resources

How to review your organisation’s pay rates against the national minimum wage

Consultation on national minimum wage and national living wage

National living wage: an important but complex shift in policy

The changes will see a pay rise for approximately 68,000 staff that are employees of the accredited businesses that commit to paying all their staff, including sub-contracted teams working on their premises, at least the Living Wage.

Sarah Vero, director of the Living Wage Foundation, said: “Today we are celebrating those 2,000 responsible businesses that are voluntarily paying the Living Wage to their staff.

“These employers are not waiting for Government to tell them what to do; their actions are helping to end the injustice that is in-work poverty in the UK now.”

The new voluntary Living Wage rate of £8.25, is 14.6% higher that the compulsory national living wage of £7.20, which comes into force on 6 April 2016 for employees aged 25 or over.

“The Living Wage campaign is growing at pace. Today more UK businesses are announcing their Living Wage accreditation including national retailer Richer Sounds, Lloyds Banking Group and Unilever,” added Vero.

Tim Munden, HR director at Unilever UK, said: “As a company committed to making sustainable living commonplace we believe it is right to raise the floor on wages. That is why we have been committed to paying our UK employees at least a living wage for some time.

National living wage: why it pays to move nowmore-than-national-living-wage

[typography font=”Molengo” size=”1.0″ size_format=”em” color=”#202020″]Recent weeks have seen high-profile employers or setting their rates higher than the voluntary levels of the Living Wage. Jo Faragher looks at how employers are dealing with low pay and preparing for next year’s national living wage. Read more…[/typography]

“We are therefore delighted to take this next natural step in gaining accreditation from the Living Wage Foundation; it underlines our commitment to a living wage approach across our supply chain and it will ensure that hundreds more people working with us will be paid the Living Wage by the end of next year.”

Asked how the Living Wage had increased by more than 5% against a backdrop of low and negative inflation, Vero told Personnel Today: “The Living Wage calculation takes into account the wider economic situation, and previously wages have risen much slower than the living costs.

“What’s happening now is a bit of catching up as businesses are operating in a healthier climate. The rate has been increased to level out the balance of living costs versus the wider economic situation.”

The Living Wage increase comes as Business in the Community (BITC) publishes Beyond pay – an inquiry into improving low-income employment, a report calling on employers to develop a comprehensive strategy to improve low paid employment that goes beyond pay alone.

It identifies immediate and long-term goals that respond to increases in poverty, low productivity rates and growing skills shortages.

Supported by the Social Mobility and Child Poverty Commission (SMCPC), the report presents findings from an inquiry carried out by the UK charity earlier this year, involving 11 companies from low paying sectors, including support services, care, retail and hospitality.

Alan Milburn, chair of the SMCPC said: “Since the recession, there has been a big increase in the number of families who find themselves in poverty despite working hard. Tackling working poverty has to be shared responsibility between employers and government.

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

“The introduction of the national living wage is a welcome step towards Britain becoming a country where work pays. But by itself it will not guarantee low-paid workers a life free from poverty. That is why this report is so important. It suggests how paying higher wages can be sustainable for employers.”

The Living Wage Foundation has launched an online interactive map as part of the Living Wage People’s Movement, detailing for the first time, all the accredited businesses and their branches that pay their staff at least the Living Wage, so that consumers and businesses can easily search for a Living Wage accredited employer to do business with or buy from.

Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

previous post
Why US firm Hallmark takes a long-term view on employee wellbeing
next post
Occupational health profile: Graham Johnson, lead nurse at health clinics, Bupa UK

You may also like

Workers with second jobs at an all-time high

11 Jul 2025

Living wage pushes up spring pay settlements

2 Jul 2025

Graduate pay versus the living wage: an HR...

25 Jun 2025

Capita and PizzaExpress named for minimum wage underpayments

29 May 2025

Next to improve wage-setting transparency after shareholder pressure

16 May 2025

Top 10 HR questions April 2025: increases to...

2 May 2025

Most businesses will need to adjust wages in...

28 Mar 2025

HR and businesses respond to Spring Statement

26 Mar 2025

April 2025: What’s coming up for HR?

21 Mar 2025

Pharmacies to work to rule over higher employment...

18 Mar 2025

  • Empower and engage for the future: A revolution in talent development (webinar) WEBINAR | As organisations strive...Read more
  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+