UK living wage raised to £7.85 an hour

Over 1,000 employers have adopted a voluntary wage rise to cover basic costs of living, as suggested by the Living Wage project. The rate has now been raised to £7.85, a 20p increase from 2013.

However, according to accounting firm KPMG, 22% of the population still earn less than the 2013 living wage. Apparently five million workers are being paid under the living wage, and women and young workers are mst likely to be affected.

The Living Wage project was launched in 2001, and since its inception over 1000 employers have signed up, including Barclays and Standard Life.

Citizens UK argue that employers who adopt the living wage can benefit from an increase in engagement and productivity within the workforce, but for many businesses, any increase to wage bills can have a challenging impact on the bottom line.