The REAL LIVING WAGE INCREASES TO £12.60 IN WALES

Over 20,400 (20,459) Living Wage workers in Wales are set for a pay boost as over 587 Living Wage Employers are signed up to pay the new Living Wage rates

  • The real Living Wage is the only UK wage rate independently calculated based on the actual cost of living and is different from the Government’s National Living Wage, which is the legal minimum employers must pay to over-21s 
  • The new real Living Wage rates are now worth over £2,262 more per year for a full-time worker in Wales than the legal minimum (National Living Wage) 
  • Almost £140m in extra wages has gone to low paid workers in Wales since 2011, through the Living Wage campaign 
  • Over 20,400 (20,459) Living Wage workers in Wales are set for a pay boost as over 587 Living Wage Employers are signed up to pay the new Living Wage rates

Over 20,400 people in Wales working for more than 587 real Living Wage Employers are set for a vital cost-of-living pay boost, as the Living Wage Foundation’s real Living Wage rates rise to £12.60 an hour across the UK (60p or 5% increase). 

Recent research by the Living Wage Foundation shows that despite inflation easing, many of Britain’s 3.7m low paid workers are still struggling with the impact of years of high prices, with 42% having less than £10 left each week after covering essential expenses, 39% having used a food bank in the past year and 28% using one at least once a month. 

“Low paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices. The real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.

It’s a challenging time for businesses too, which is why it is so encouraging to see the Living Wage movement continue to grow at pace. This year, we reached the major milestone of 15,000 accredited Living Wage Employers, with half of them signing up since 2021. Employers who want to go beyond the Government’s minimum wage and ensure their workers are paid in line with the real cost of living can look to these leading employers and accredit with the Living Wage Foundation.”

Katherine Chapman, Living Wage Foundation Director

The real Living Wage vs the ‘National Living Wage’ – the difference

The real Living Wage is different to the government’s minimum wage rate, which for those over the age of 21 is often called the “National Living Wage”. It is a higher, voluntary rate that is independently calculated based solely on the actual cost of living. The Government’s rate is the legal minimum businesses are required to pay by law.    

The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer and is now £12.60 an hour. The ‘National Living Wage’ applies to those over the age of 21 and is worth £11.44 an hour.  

A full-time worker earning the new, real Living Wage would earn £2,262 a year more than a worker earning the current government minimum (NLW), and £1,170 more than their current pay.  

“We are proud of our work directly tackling low pay and in-work poverty, and it’s more important now than ever due to the cost-of-living crisis which is hitting the poorest workers hardest. 

It’s great news to hear that Living Wage accreditations have so far put £140,000,000 in extra wages in the pockets of low-paid workers in Wales. We are continuing our work to ensure this number continues to grow, and we encourage employers in Wales to join the 587 who are currently accredited Living Wage Employers. Fairness is the foundation of any greener future for Wales.” 

Simon Slater, Director of Cynnal Cymru, the Living Wage Foundation’s Accreditation Partner for Wales

“The Real Living Wage makes a real difference to the lives and livelihoods of thousands workers in Wales. It is a key baseline in providing workers with greater financial security and in helping to create fairer work.

We would urge and encourage employers across Wales to commit to paying their workers at least the Real Living Wage and to become accredited for doing so. We will continue to work with the living wage movement, employers and with trade unions to promote the Real Living Wage for all.

As we approach Living Wage week on 4th November, there will be plenty of opportunities to explore the benefits of the Real Living Wage for workers, employers, and our communities.”

Jack Sargeant, Minister for Culture, Skills and Social Partnership

The Living Wage movement continues to grow 

Despite the economic challenges, in the past three years record numbers of employers have signed up to pay the real Living Wage, including to their third-party contractors like cleaners and security guards, with 1 in 9 employees now working for an accredited Living Wage Employer.  

There are now over 587 Living Wage Employers in Wales, including employers such as Tiny Rebel and Transport for Wales. They are part of a network that includes half of FTSE 100 companies, household names like Aviva, Everton FC, Ikea, Burberry and LUSH as well as thousands of small businesses, who are choosing to pay the real Living Wage to provide workers and families with greater security and stability. 

There are now also 11 Living Hours employers in Wales, including Wealthify, West Wales Systems, and Nuvolt, going beyond payment of the real Living Wage to also provide a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked.  

“We’ve always wanted to look after our team and to provide as much stability as we can within a sector that isn’t renowned for it. As our business has grown since 2016, we’ve always increased our wages with it. 

It’s a challenge in an industry where we are competing on price, but we’ve found our commitment to being a Living Wage Employer has really helped with staff retention. We would encourage other employers, big and small, to become a part of the scheme.” 

Alec Merriman, co-owner of Little Valley Bakery in Swansea

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