Voluntary living wage boosts income for 150,000 workers

More than 3,600 companies will begin paying employees a higher rate of voluntary living wage as part of increases to be announced today, November 6.

Around 150,000 workers are set to benefit from the rise of 30p an hour and 45p an hour in London, increasing to £8.75 or £10.20 respectively.

The statutory National Living Wage for over 25-year-olds is £7.50, 14% less than the so-called "real living wage".

The 3.6% national rise and 4.6% rise in the capital will go some way to combat rising inflation that is predicted to peak at 3.2% by the end of this year, according to the Bank of England's quarterly inflation report.

Living Wage Foundation director Katherine Chapman says: "Great businesses know that, even during these tough times, not only is fair pay the right thing to do but paying the real living wage brings big benefits.

"Nine out of 10 accredited living wage employers report real benefits including improved retention, reputation, recruitment and staff motivation."

Frances O'Grady, general secretary of the Trades Union Congress (TUC), has Ms Chapman's comments and is urging more employers to sign up to pay workers the "vital" hourly rate.

She says: "Profits in the UK are at record levels, yet many bosses are still refusing to invest in their staff.

"Smart employers know the value of paying the real living wage. It reduces staff turnover and boosts productivity levels."