The Living Wage Foundation has today announced a 25p rise in the UK Living Wage and a 35p rise in the London rate as a result of the increased cost of living.

More than 180,000 workers for the 4,700 Living Wage employers across the UK, such as Rowlinson Knitwear and Fifth Column, will see their hourly rate increase to £9, with those in London receiving £10.55. The ‘real’ Living Wage rate is different to the government’s national living and minimum wages, which are £7.83 for over 25s and £7.38 for under 25s respectively, in that it is independently calculated based on what people need to live in the UK and London. The new rates have been mainly driven by higher transport costs, private rents and council tax.

The Living Wage Foundation director, Tess Lanning, said: “The Living Wage campaign is about tackling the rising problem of people paid less than they need to live. Responsible businesses know that the government minimum is not enough to live on, and today’s new Living Wage rates will provide a boost for hundreds of thousands of workers throughout the UK.

“Employers that pay the real Living Wage enable their workers to live a life of dignity, supporting them to pay off debts and meet the pressures of rising bills. We want to see local councils, universities, football clubs, bus companies and the other major public and private sector employers in every city commit to become real Living Wage employers. When they do, thousands of people get a pay rise, but other local employers also follow their lead. If more of these institutions step up, we can start to build true Living Wage places.”

Rowlinson’s managing director Donald Moore added: “With values of trust, care and being better shaping every aspect of our behaviour, we’re both honour-bound and proud to commit to ensuring all our staff and contractors benefit from fair rates of pay to meet the rising cost of living. As we see it, there is also a very strong commercial benefit to making a Living Wage commitment. We’re a growing business, so it’s increasingly important to motivate, retain and attract the right talent. It’s our belief that employees who have great working conditions and receive a fair reward are in a strong position to provide an exceptional experience to our customers. Our Living Wage commitment helps us get closer to achieving our goal of delivering unparalleled customer service. We encourage colleagues, partners and friends in the employee-owned and textiles communities to join us in making a Living Wage commitment.”