Under the real living wage scheme employers voluntarily increase pay beyond the government minimums, in a bid to better support a more realistic outlook on the cost of living.
The increase will see a 20p boost nationally raising employee income to £9.50 per hour.
Those living in London receive a smaller boost of 10p but earn more overall at £10.85 per hour.
Nearly 7,000 employers across the UK are are already paying employees this recommended rate.
20% of all employees on the UK are not covered by this scheme, the hospitality sector for example, had the highest number of jobs paid below the Living Wage at 70.8%, followed by the arts, entertainment and recreation sector at 36.8%.
One such employer is Alison Payne, Director of Cook Food a part of the Living Wage Foundation since 2015.
“People are really important, a key part of our success,” said Payne.
Since lockdown, the firm has upped it’s sick pay allowance, to help fund employees who might have to self-isolate.
One of Payne’s employees, aged 24, used to work 56 hours a week to sustain herself working two jobs, a stressful existence.
After joining Cook Food though and being given a real living wage she was able to work a regular 40 hours and still make ends meet.
This is a great strategy for reducing turnover rates and enhancing employee performance. A better paid employee does not have a second job, so is more focussed, less stressed and better rested.
As Payne says: “If we want to provide really good service in our shops and provide really good quality food, it’s important to pay people well. We really do find the more we take care of people, the more they take care of us.”