So much is at stake in 2022, that the last thing we need is a summer of discontent to offset all the good work thats been done to catapult this country out of the pandemic doldrums. Nobody has to pay the Real Living Wage, unfortunately its a voluntary commitment. Paying the real Living Wage is not only good for your employees financial wellbeing; its good for business too. What is stamp duty, what are the new rates and how much will I pay? Email newsletters Give reasonable notice of shifts (the CIPD calls for a. Recognise the lengths to which employees often go to make shifts work (such as paying for childcare or transport), by fully compensating for shifts cancelled with less than 24 hours notice. All rights reserved. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. It is calculated by the Living Wage Foundation, a campaigning organisation, and is based directly on cost of living. For 2022-23 the rate is 10.50 per hour, increasing to 11.35 per hour from April 2023. Katherine Chapman, the director of the Living Wage Foundation, said: With living costs rising so rapidly, millions are facing an awful heat or eat choice this winter thats why a real living wage is more vital than ever. "As well as offering enough hours for staff to have a decent standard of living, organisations should review aspects of employment such as flexible working, career progression opportunities, and financial wellbeing benefits, for example occupational sick pay or hardship loans," he said. OHW+ Todays new rates will provide hundreds of thousands of workers and their families with greater security and stability during these incredibly difficult times. We know that the living wage is good for employers as well as workers, thats why the real living wage must continue to be at the heart of solutions to tackle the cost-of-living crisis.. MS Excel Spreadsheet, 264 KB Details This page contains the Low Pay Commission's recommendations on the National Living Wage and National Minimum Wage rates which will apply from 1 April. Food Cardiff spoke to Kasim Ali, founder and proprietor of Waterloo Tea, about helping Cardiff Front Door Communications are a Cardiff-based PR, social media and content marketing agency. See the CIPDs factsheet on pay fairness and pay reporting for more information on: A liveable wage is one that enables people to lead a dignified life and meet the true cost of living. The context for this year's rates has been the ongoing 'cost of living crisis', which has seen inflation reach its highest rate since the early 1980s. We use necessary cookies to make The Workers Union website work. It is higher than the government-set National Living Wage - currently 9.50 an hour for those over 23 - and reflects what the charity thinks people need to earn to cover everyday costs. The new rates, to be brought forward from November, are higher than the statutory national minimum wage, which is currently 9.50 for adults aged 23 and over. By bringing forward the announcement, it is hoped that Living Wage Employers can implement the new rates as soon as possible to best support their employees in the tough times ahead. They did not abandon us when we needed them, so we should not cut the ropes and run now they need us. While there is, understandably, concern about strained supply chains and energy prices, there must, equally, be concern about the people who are most likely to be victims of their fluctuations. Its never been more important that employers who can afford it protect those who will be most affected by price rises by paying a wage based on the cost of living.. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. Oxford City . The National Living Wagealready failed to protect many households from povertybefore the crisis emerged, so the 6.6% increase in April 2022 hasnt been enough to offset the rising cost of living. Major new names include the Royal Albert Hall, Aston University, and the ExCeL centre in London. In April 2016 the government introduced a higher minimum wage rate for all staff over 25 years of age inspired by the Living Wage campaign - even calling it the national living wage. The living wage which is paid by more than 11,000 employers including Aviva, Ikea, Burberry and Lush will increase by 1 to 10.90 an hour across the UK, and by 90p to 11.95 an hour in London. However, the general secretary of the Unison union, Christina McAnea, said that lower-paid workers were "still crying out for help". 6.6%. From April 2022 the statutory National Living Wage rose to 9.50 an hour for anyone over 23 years of age working in the UK. With high inflation predicted to last beyond 2022, the recent 6.6% National Living Wage increase wont be enough to protect working people from poverty as the cost of living continues to rise. Across the UK the rate will be 10.90, a 1.00 rise, and 11.95 in London, an uplift of 90p. The 10.1% rise, which was brought forward from November, is the biggest in the scheme's 10-year history and meant to reflect soaring living costs. Unlike the Real Living Wage, most employers by law have to pay their workers the National Living or Minimum Wage. What's he waiting for? Back in October 2021, the government announced that the National Living Wage the minimum amount that a worker over 23 must be paid per hour will rise in April this year. Today the government raised the National Living Wage (the legal minimum for over 23s) rates for 2022 to 9.50 for over 23s and to 9.18 for those under 23. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Be transparent about how pay is set and how people can secure a pay rise, communicating both directly to employees and through unions and employee representatives where appropriate. VideoRecord numbers of guide dog volunteers after BBC story. We use cookies to ensure that we give you the best experience on our website. The Short Guide to Constructive Dismissal, Guide to the New Government Support Scheme for Workers, How to Negotiate the Best Exit Package for Employees. The cost of food, energy and fuel has soared since April, although energy bills will be limited from October under government plans to help households and businesses. Join The Workers Union fighting the corner of working people. Earning the Living Wage means I'm not so tired, I can give up some extra part time work and there's a little left at the end of the month. Calculated based on what people need to live on, the rate is higher than the 9.50 national living wage set by the government for workers aged 23 and over. More than 300,000 workers in the UK will get a pay rise from Monday as the charity behind the voluntary real living wage raises the minimum hourly rate amid growing fears over a squeeze on . However, more than 9,000 employers across the UK have taken this on of their own accord. Increasingly, responsible organisations recognise that an employees wage needs to meet the real cost of living. The real living wage is currently 9.90 pounds ($12.49) per hour and 11.05 pounds per hour in London. The companies that sign up to The Living Wage Foundations voluntary agreement will pay 9.90 in the country and 11.05 an hour in London but is even this enough in the circumstances? You can read the full list of entitlements on gov.uk. Chris Smallwood, owner of Anchor Removals, based in Worsley, Manchester said he became a Living Wage employer in 2016. The London Living Wage for 2022-23 is 11.95 Rising fuel costs and higher rents have pushed up the cost of living. During the pandemic, my partner lost her job as a travel consultant and went to work for a supermarket. Some 400,000 workers at businesses that have volunteered to pay the Real Living Wage are set to get a record pay boost. The statutory national minimum wage is reviewed on on 1 April every year. Save my name, email, and website in this browser for the next time I comment. The headline rate fell slightly to 9.9% in August, although is set to rise further in October after a sharp increase in energy bills. Overallinflation is predicted to hit 14% in October 2022, although the poorest households may face an even greater increase (14%), as they spend a higher proportion of their budget on gas and electricity. Your email address will not be published. Where businesses cannot afford to track wage rises with inflation, employers should consider other support and incentives. Frances OGrady, general secretary of the TUC, said the Living Wage Foundation figures showed an urgent need for the government to raise the legal minimum wage to 10 an hour immediately, ban zero-hours contracts and give trade unions more access to workplaces to negotiate improved pay deals. The real Living Wage rates are higher because they are independently-calculated based on what people need to get by. Employers should make an extra effort to understand peoples needs and circumstances, treat them with dignity and respect, identify ways to support their financial wellbeing, and help to break down any barriers preventing them fromsecuring a liveable income. With Inflation at its highest levels in four decades and fast-approaching double figures, paying staff a real Living Wage based on the cost of living has never been more important. In response to the cost-of-living crisis, the Living Wage Foundation has committed to bringing forward the announcement of its new rates to September 2022 two months ahead of schedule. Mr Smallwood employs Gavin Ryan who said that when he started working at Anchor Removals 10 years ago he struggled with the wages. Like it or not, the cost of living is going up, up and up. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. But critics say some employers faced with rising costs will struggle to afford it. The 2022 Real Living Wage is set at 11.05 per hour for those living in London and 9.90 everywhere else in the UK. CIPD research suggests that even more employers pay the voluntary rate, even if theyre not accredited: 74% of employers pay, or plan to pay, at or above the real Living Wage. The real Living Wage is the only UK wage rate that is voluntarily paid by over12,000UK businesses who believe their staff deserve a wage which meetseverydayneeds- likethe weekly shop, or asurprisetrip to the dentist.Over450,000 employees have received a pay rise as a result of the Living Wage campaign and we enjoy cross-party support. Ensure that pay outcomes and processes in your organisation are fair such as by checking the reasons for gender, ethnicity or disability pay gaps and engaging with unions or employee representative groups as relevant. The consumer prices index (CPI) rate of inflation reached 9% in the year to April, its highest in 40 years. These include Google ReCaptcha, social media platforms such as Facebook and Twitter (through the use of sharing buttons), or embedded content from YouTube and Vimeo. The UK Living Wage for 2022-23 is 10.90. "With the rate of inflation fast approaching double figures, we are bringing forward the annual announcement of the 2022-23 Living Wage rates to late September," said Katherine Chapman, director of the Living Wage Foundation. 1079797, Providing workers with the hours they want and need, Cost-of-living crisis: Help for employees, Getting, developing and keeping the right people, HR-inform: practical HR and employment law resources, Building the best HR teams around the world, Championing better work and working lives, Centre for Research in Social Policy at Loughborough University, failed to protect many households from poverty, inflation is predicted to hit 14% in October 2022, Let's make work a more reliable route out of poverty, Next: Provide financial wellbeing support. Katherine Chapman, director of the Living Wage Foundation, said higher pay needed to be at the heart of Britains post-pandemic recovery. We use Google Analytics cookies to measure how you use www.theworkersunion.com. Calculate the minimum income needed for different family types with the minimum income calculator: Even if you pay at or above the real Living Wage, members of your workforce may struggle to earn a liveable income if theyre not able to work enough hours in other words, if theyre underemployed. The Workers Union may make use of different third-party applications and services to enhance the experience of website visitors. The rise in the National Living Wage is a positive step for many workers who have been working hard and struggling to make ends meet. I am a single parent, and was working to try and have enough money to pay my bills, and provide for myself and my son. The Oxford Living Wage is an hourly minimum pay that promotes liveable earnings for all workers and recognises the high cost of living in Oxford. However, this wageis not calculated according to what employees and their families need to live. The hourly rates are rising by 1 to 10.90 across the UK and by 90p to 11.95 in London. In some cases, employers simply may not be able to offer any more hours. Our Standards: The Thomson Reuters Trust Principles. It is less - and called the Minimum Wage - if you're aged 21 to 22 (9.18) or 18 to 20 (6.83). 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Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport magazines, touching on some of the employment and wellbeing issues experienced by those in road haulage. The Workers Union (Company, we, us, our) is committed to protecting the privacy and security of your personal data. Wages fall 1.2% behind inflation as cost of living crisis deepens. The legal pay floor currently stands at 8.91 for workers aged 23 and over, although it is due to rise to 9.50 next April in a move announced by the chancellor, Rishi Sunak, at last months budget. The 10.1% rise, which was brought forward from November, is the biggest in the scheme's 10-year history . That's an improvement of 6.6% (59 pence) when you compare it to the previous National Minimum Wage rate. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. Browse all HR topics From a broader HR perspective, the benefit to the whole workforce is key, in terms of confidence in the firms employment practices. If you continue to use this site we will assume that you are happy with it. The statutory national minimum wage stands at 9.50 per hour. A wide-range of unions have resorted to walkoutsin an effort to strengthen their positions, with industrial action set to continue into October. World of Learning Summit opens its doors in London Olympia this February! The national living wage, for employees aged 23 and over, is 9.50 an hour. Ashleigh is editor of OHW+ and HR and wellbeing editor at Personnel Today. Speaking about the rises after the autumn budget, the Chancellor of the Exchequer, Rishi Sunak said: This is a Government that is on the side of working people. Paying the real Living Wage is not only good for your employees financial wellbeing; its good for business too, Helping your people to escape poverty neednt cost a penny, The CIPDs eighteenth reward management survey reveals the UK benefits landscape and highlights the importance of employee financial wellbeing, Copyright The Chartered Institute of Personnel and Development 2022. The change will see workers' pay increase from 8.91 to 9.50.. Waiting until April would be foolish. An estimated 4.8 million workers in Britain are paid less than the real living wage, and there is evidence of a rise in workers skipping meals and using food banks. Assume that you are happy with it on cost of Living greater security and stability during incredibly! Is committed to protecting the privacy and security of your personal data are the new will... April, its highest in 40 years, owner of Anchor Removals, based in Worsley, Manchester he! 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