Lidl UK to increase basic wage from £8.45 to £8.75 next year

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As it is calculated by the real cost of living, the "real" living wage is consistently higher in London than it is elsewhere in the United Kingdom - great news for anyone paying a grand a month for a cupboard in Zone 4.

In the North West 266 employers have committed to paying staff more as the rate rises.

'These new rates would make a big difference to Britain's lowest-paid, and they would help families keep their heads above water'.

Lidl said the move was part of its pledge to match the Living Wage Foundation's rates, which were recently recalculated due to increases in the cost of living.

The campaign group Living Wage Foundation announced today that companies which have voluntarily signed up to its scheme will raise their minimum wage to £8.75 an hour, and £10.20 in London.

Addressing household finances, Bagnall said that although less people were earning below the RLW, those at the bottom of the pay scale were feeling the "squeeze" due to increases in the cost of living and a decline in pay.

Over 1,000 employers have signed up to adopt the living wage over the past year, including Heathrow airport and the National Gallery.

Ahead of Living Wage week (6-12 November), KPMG's annual Living Wage report reveals 21 per cent of people in the United Kingdom are still earning below the real Living Wage, meaning that an estimated 5.5 million employees are struggling to get out of in-work poverty.

More than 150,000 workers will see their "real living wage" increase by 45p to £10.20 an hour in London, and by 30p to £8.75 in the rest of the country.

There is still a long way to go, with many employers not adopting the voluntary wage.

"In-work poverty is today's story", she says.

"The new living wage rates announced today will bring relief for thousands of United Kingdom workers being squeezed by stagnant wages and rising inflation".

Two cleaners at a Ferrari showroom were sacked last week after walking out on strike in protest at not being paid the living wage. You can check which companies are signed up on the Living Wage Foundation website.

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