20% of UK Workers Earn Less Than Living Wage

How much is the real UK living wage? Currently, as of 6th November 2017, the NLW stands at £8.75 per hour (£10.25 within London). Although this is the living wage of our country, it’s not the same as minimum wage in our country. Currently min wage stands at £7.50 per hour for those over the age of 25 until April 2018, where we should see an increase.

In latest news shared by The Independent, it’s been found that a staggering fifth of our country does not earn the NLW. If this wasn’t bad enough, many of those affected are women – 1 in 4 to be exact. This proves that there are still issues when it comes to equal rights in the workplace.


women in business

Image credit: Antonio Guillem via 123RF


What is National Living Wage?

The national living wage is worked out by an independent body. They work out how much you should ideally be earning based upon the basic cost of living in the UK. Taking into account the cost of goods as well as the cost of rent etc. It’s updated every year and unsurprisingly it is always higher than minimum wage. 21% of UK workers currently struggling with “in-work” poverty – according to KPMG.

More than 1,000 employers have signed up to pay the NLW since Living Wage Week last year, with Heathrow now the 1st NLW airport. But even with this increase in employers using the living wage – is it really enough?



Image credit: shaunwilkinson via 123RF


Thoughts & Opinions

Living Wage Foundation Director, Katherine Chapman said “The new Living Wage rates announced today will bring relief for thousands of UK workers being squeezed by stagnant wages and rising inflation. It’s thanks to the leadership of over 3,600 employers across the UK who are committed to paying all their staff, including cleaners and security staff, a real Living Wage.”

Only time will tell if this wage increase will be positive or negative for UK workers. Unless more employers are willing to start using the NLW over minimum wage, it’s unlikely that any increase to it will be helpful for employees.

What do you think about the UK living wage? Do you think we should start using NLW as minimum wage? Do you pay your staff NLW? Let us know via Twitter at @CCC_Finance. Find more of our blog posts right here.

Feature image credit: Yulia Grogoryeva via 123RF

Leave a Comment