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Voluntary living wage increases to 拢8.75 an hour

By Rachel Lawler
 
The Living Wage Foundation has increased its suggested living wage to 拢8.75 an hour in England and 拢10.20 an hour in London.
 
More than 3,600 employers use the voluntary scheme to set staff wages, with the figures based on the average cost of a selection of household goods and services.
 
This year the rate has increased by 30p an hour in England and 45p an hour 鈥 a rise of 3.6% and 4.6% respectively.
 
National Minimum Wage
The living wage is still significantly higher than the legal minimum set by the government鈥檚 National Minimum Wage and National Living Wage.
 
Currently, those aged 25 and over must be paid at least 拢7.50 an hour, for those aged 21 to 24 the minimum rate is 拢7.05 an hour and for those aged 18 to 20 the rate is 拢5.60.
 
Those aged 18 and under must be paid at least 拢4.05 an hour and apprentices must be paid a minimum of 拢3.50 an hour.
 
Both the National Living Wage and National Minimum Wage are reviewed every April.
 
The average wage in the early years sector is 拢8.45 an hour, according to research from Ceeda.
 
Katherine Chapman, director at the Living Wage Foundation, said: 鈥淚n-work poverty is today鈥檚 story. New figures out yesterday show that 5.5 million people are still paid less than the real Living Wage.鈥
 
麻花影视concerns
The 麻花影视has warned that increase in the statutory National Living Wage and Minimum Wage will put additional pressure on the early years sector if they are not met with sufficient funding.
 
Neil Leitch, chief executive of the Alliance, said: 鈥淎s a country we are privileged to have such an experienced and passionate childcare workforce. But, with early years pay falling well below the national average, we are struggling to recruit and retain quality staff. Many providers would love to pay staff the living wage but, until the government funds the sector adequately, such an increase will be impossible.鈥
 
The Alliance鈥檚 Fair Future Funding campaign is calling for the government to recognise the true cost of its funded childcare offer and reverse its proposal to freeze funding rates until 2020.
 
You can sign up as a supporter of the campaign .