It’s Real Living Wage week and – here at Investing Ethically – we’re marking our support for this important initiative.
The Real Living Wage differs from the statutory minimum wages set by the government. Currently the Minimum Wage (for under 23s) is £10.18 an hour, and the National Living Wage (for over 23s) is £10.42 an hour (for over 23s). That National Living Wage is calculated as a percentage of median earnings and aims to reach 66% of median earnings by 2024.
In contrast, the Real Living Wage is calculated based on the price for a basket of household goods and services – so it represents the real cost of living for employees and their families. Inflation has begun to fall but is still higher than at any time since the early 1990s. Over the last year, the cost of living – measured by the Consumer Price Index (CPI) has risen by 6.3% – with increased food prices being particularly significant. This year’s Real Living Wage is £12 an hour (and £13.15 in London). This is an above-inflation increase and is notably higher than the statutory minima rates. You can find full details of how this is calculated online.
The Real Living Wage is paid voluntarily by over 14,000 UK businesses of all sizes and sectors, as a commitment to their staff. We’re pleased to say that Investing Ethically has been one of them since 2018. 😊