National Theatre, Queen’s University Belfast and Barts NHS Trust among those joining the movement
Over 16,000 UK employers are now paying the real Living Wage, joining household names such as Ikea, Fred Perry and Aviva
- New study shows the real Living Wage has put £3.85bn back into the pockets of Britain’s low-paid workers since 2011
More than 16,000 UK employers have now signed up to pay the real Living Wage, the UK’s only wage rate based on the cost of living. This milestone comes as a new study from Cardiff Business School reveals the movement’s far-reaching impact on workers and employers, with more than half a million workers having benefitted from pay increases thanks to the Living Wage scheme.
Recent Living Wage accreditations include the National Theatre, Queen’s University Belfast, the Imperial War Museum and Barts NHS Trust, one of the largest NHS trusts in England, which employs thousands of staff and runs five hospitals in London. These employers join household names such as Ikea, Aviva and Fred Perry who pay their staff the Living Wage.
The new study from Cardiff Business School shows that, since 2011, the real Living Wage has given over £3.8bn back to Britain’s lowest paid workers, with 15 per cent of workers receiving an hourly pay increase of 20 per cent or more.
The study also finds that the Living Wage movement has delivered modest but positive benefits to employers, such as improved reputation and HR outcomes, while reinforcing other efforts to tackle low pay, including collective bargaining and union engagement. The authors conclude that the Living Wage is a successful model of ‘civil regulation’, where civil society sets voluntary standards that go beyond the statutory minimum.
The real Living Wage rate is currently £12.60 across the UK and £13.85 in London and is voluntarily paid by Living Wage Employers to all directly employed staff over 18 as well as third-party staff like cleaners, security guards and caterers. This wage rate is higher than the government’s National Living Wage of £12.21, which only applies to workers aged 21 and over.
Katherine Chapman, Director of the Living Wage Foundation said:
“We are proud to reach the milestone of 16,000 accredited Living Wage Employers across the UK with Barts NHS Trust, Queen’s University Belfast and the National Theatre joining the Living Wage movement.
“Despite uncertain economic times, the Living Wage movement continues to grow across a range of sectors – it shows what’s possible when civil society and business come together to drive up standards, and create work that works for everyone.”
Edmund Heery, Professor Emeritus at Cardiff Business School and co-author of the study, said:
“Our research shows the Living Wage movement has had a meaningful impact on some of the lowest-paid workers in the UK. It has also contributed to wider improvements in employment standards and has worked to complement the efforts of trade unions, local authorities and employers themselves.
“It’s a model of civil regulation that shows what’s possible when civil society comes together to drive positive change.”
Living Wage Employers are also leading the way on Living Hours and Living Pension accreditations, which are designed to tackle insecure work and inadequate retirement savings. More than 180 employers are accredited with Living Hours, guaranteeing predictable shifts and a minimum of 16 hours of work per week, alongside a real Living Wage. An increasing number are also adopting the Living Pension standard, committing to pension contributions that will help support workers’ financial security in retirement.