Today, April 1st, sees the introduction of the £7.20 statutory minimum wage premium rate for staff over 25, which shall see a pay rise for millions of workers across the country. The compulsory ‘national living wage’ should however not be confused with the Living Wage – a voluntary rate set by the Living Wage Foundation. The Government rate is based on median earnings while the Living Wage Foundation rate is calculated according to the cost of living, and reflects the higher cost of living in the capital.
Neil Jameson, Executive Director of Citizens UK said:
“We welcome the move by government as a key milestone in the Living Wage campaign, pioneered by Citizens UK leaders in 2001 as a way of tackling the scourge of low pay. Thousands of workers, students and businesses have championed the campaign since then.
"Citizens UK encourages those employers who can afford to go further than the legal minimum to work towards paying the Living Wage – which reflects the cost of living here in the UK. Citizens UK applauds the 2,300+ employers who have signed up to the voluntary rate of £8.25 in the UK & £9.40 in London. This includes a third of the FTSE 100 companies, and high street names such as Ikea, Nationwide and Nestle. This has impacted on the families of over 80,000 employees.