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 wageLatest NewsPay & benefitsLiving WageMinimum wage

‘Real’ Living Wage increases to £9.90 an hour

by Ashleigh Webber 15 Nov 2021
by Ashleigh Webber 15 Nov 2021 Fujitsu has become a Living Wage employer
Robert Evans / Alamy
Fujitsu has become a Living Wage employer
Robert Evans / Alamy

The ‘real’ Living Wage, the voluntary rate calculated based on what people need to live on, has increased to £9.90 an hour across the UK and £11.05 an hour in London.

The rate is paid by employers who have voluntarily signed up to be certified by the Living Wage Foundation. It is not to be confused with the national living wage – the legal minimum hourly rate that employers must pay staff aged 23 and over – which is currently £8.91 an hour but will rise to £9.50 in April 2022.

The new Living Wage rates, set by the Living Wage Foundation, apply immediately. Staff working for accredited Living Wage employers in London will see their hourly pay increase by 20 pence, up from the current £10.85 per hour, while those across the rest of the UK will receive an additional 40 pence per hour, up from £9.50 an hour.

Katherine Chapman, Living Wage Foundation director, said: “With living costs rising so rapidly, today’s new Living Wage rates will provide hundreds of thousands of workers and their families with greater security and stability.

“For the past 20 years the Living Wage movement has shaped the debate on low pay, showing what is possible when responsible employers step up and provide a wage that delivers dignity. Despite this, there are still millions trapped in working poverty, struggling to keep their heads above water – and these are people working in jobs that kept society going during the pandemic like social care workers and cleaners.

Low pay

National living wage to increase 6.6%

Pay rises and better in-work benefits needed to retain staff, report finds

Real terms pay growth still weak, despite promise of higher wages

“We know that the Living Wage is good for businesses as well as workers, and as we rebuild our economy post pandemic, the real Living Wage must be at its heart.”

The Living Wage Foundation said more than 300,000 workers are set for a pay increase, including those at firms that have recently become accredited employers, such as Taylor Wimpey, Persimmon Homes, Fujitsu, Getir and Capita.

It claimed that a full-time worker earning the new, real Living Wage would earn £1,930 a year more than a worker earning the current government minimum. In London, the gap is £4,173 a year.

Sarah Wadsworth, UK HR director at Fujitsu, said becoming a Living Wage employer was the “right thing to do for our employees but also ensures that our suppliers and partners are also planning to align to this for their employees”.

“Fair pay for all employees continues to be relevant for our business as well as the benefits it brings to wider communities,” she said.

Fair pay for all employees continues to be relevant for our business as well as the benefits it brings to wider communities” – Sarah Wadsworth, Fujitsu

Anne Billson-Ross, Taylor Wimpey group HR director, said: “This voluntary commitment is a fantastic example of the direct action we are taking to ensure we remain an employer of choice, committed to do the right thing by our employees, suppliers and subcontractors.”

The new rates were announced as the Foundation published analysis that showed 17.1% of employee jobs are still paid less than the real Living Wage, rising to 21.3% in Northern Ireland and 20.2% in the East Midlands.

This was a significant decrease from the 20.2% of employee jobs that were paid below the Living Wage in 2020.

People from ethnic minority backgrounds were more likely to be low paid, with 19.4% of these workers earning below the Living Wage, compared to 16.3% of white workers.

A fifth of jobs held by women were paid below the Living Wage, compared to 13.9% of jobs held by men.

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.

In his budget last month chancellor Rishi Sunak announced the new national minimum wage and national living wage rates that apply from 1 April 2022.

Reward, compensation and benefits opportunities


Browse all comp and benefits jobs

Ashleigh Webber

Ashleigh is a former editor of OHW+ and former HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support.

previous post
Self-isolation could be scrapped in March, reports suggest
next post
CIPD: One in four expect hiring difficulties to increase

You may also like

UK sees large rise in number of low...

27 Feb 2025

Lidl announces pay rise from March 2025

11 Feb 2025

Top 10 HR questions October 2024: National living...

1 Nov 2024

National living wage increase of 6.7% confirmed

29 Oct 2024

Living Wage rate increases to £12.60 an hour

23 Oct 2024

More than 2m left with less than £10...

15 Oct 2024

Card Factory blames soaring wages for profits plunge

24 Sep 2024

National living wage for 18 to 20-year-olds to...

30 Jul 2024

Living Wage employers hit 15,000

10 Jul 2024

Aldi raises staff pay again in 2024

13 Mar 2024

  • 2025 Employee Communications Report PROMOTED | HR and leadership...Read more
  • The Majority of Employees Have Their Eyes on Their Next Move PROMOTED | A staggering 65%...Read more
  • Prioritising performance management: Strategies for success (webinar) WEBINAR | In today’s fast-paced...Read more
  • Self-Leadership: The Key to Successful Organisations PROMOTED | Eletive is helping businesses...Read more
  • Retaining Female Talent: Four Ways to Reduce Workplace Drop Out PROMOTED | International Women’s Day...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+