Real Living Wage increases to £12.60 in Northern Ireland

• Over 4,200 Living Wage workers in NI, are set for a pay boost as over 15,000 Living Wage employers across the UK are signed up to pay the new rates
• The real Living Wage is the only UK wage rate independently calculated based solely on the actual cost of living and is different from the government's National Minimum Wage and National Living Wage, which is the legal minimum employers must pay
• The new real Living Wage rates are now worth over £2,262 more per year in the UK than the legal minimum
• Nearly £3.5bn in extra wages has gone to low paid workers who work for a Living Wage employer since 2011

Recent research by the Living Wage Foundation shows that despite inflation easing, many of Britain’s 3.7m low paid workers are still struggling with the impact of years of high prices, with 42% having less than £10 left each week after covering essential expenses, 39% having used a food bank in the past year and 28% using one at least once a month.

The real Living Wage vs the ‘National Living Wage’ - the difference

The real Living Wage is different to the government’s minimum wage rate, which for those over the age of 21 is often called the “National Living Wage”. It is a higher, voluntary rate that is independently calculated based solely on the actual cost of living. The Government’s rate is the legal minimum businesses are required to pay by law.   In real terms a full-time worker earning the new, real Living Wage would earn £2,262 a year more than a worker earning the current government minimum (NLW), and £1,170 more than their current pay.

The Living Wage movement continues to grow

Despite the economic challenges, in the past three years record numbers of employers across the UK have signed up to pay the real Living Wage, including to their third-party contractors like cleaners and security guards, with 1 in 9 employees now working for an accredited Living Wage Employer. Northern Ireland has been no exception with more employers accrediting so far this year than ever before. These companies represent both big and small employers including Queens University, Invest NI, Mackle Pet Foods, Community Advice Lisburn and Castlereagh and the Clanrye Group. And not forgetting all those employers who are already accredited Living Wage employers and who continue to ensure their workers have a decent standard of living.

While NI has for some time lagged behind the rest of the UK, the Living Wage now has a fair wind in NI with Advice NI launching Living Wage NI in June this year in partnership with the Living Wage Foundation and the Department for the Economy.  Just like other UK jurisdictions, NI now has an agency on the ground promoting the Living Wage and accrediting local businesses.  This has not been before time.  At 15.6%, which equates to 190,000 jobs, NI has one of the highest rates of employees paid below the Living Wage in the UK. Driving up the number of people being paid the real Living Wage matters. It has been a missing piece of anti-poverty work in NI for too long.

Economy Minister Conor Murphy said:

“Investing in people through a commitment to the Real Living Wage helps to address the all-too-common problem of low wage jobs.  Accredited Real Living Wage employers can also benefit from an increase in productivity, along with enjoying greater retention rates and becoming an employer of choice. My Department’s funding and support for the Real Living Wage franchise aligns with my economic plan and is a critical building block for the creation of good jobs for all in the north.” 

Mary McManus Living Wage NI Regional Manager said:

“Low paid workers in NI have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices. The real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to the over 4200 NI workers & their families who will see their pay increase.

It's a challenging time for businesses too, which is why it is so encouraging to find such an appetite among NI employers to sign up as Living Wage employers and join the growing NI Living Wage movement. We currently have 114 Living Wage Employers signed up to the scheme who want to go beyond the Government’s minimum wage and ensure their workers are paid in line with the real cost of living.  There are also many more at various stages of accreditation. Research from Cardiff Business school shows how beneficial it can be for businesses with 94% reporting improvements in recruitment, retention and reputation.”

Kevin Higgins, Head of Policy at Advice NI stated:

“We are thrilled to have established Living Wage NI to tackle in-work poverty and encourage businesses to pay a real Living Wage based on the cost of living. Everyday our advisers across the network are dealing with people living in poverty and very often this includes people who are in low paid work. We know that the cost of living crisis has hit everyone but it has hit the poorest hardest. With thanks to funding from the Department for the Economy and the Living Wage Foundation, Living Wage NI will be able to build on the growing momentum and secure pay rises for those who need them most.”

ENDS

Image Caption: (L-R) Kevin Higgins, Head of Policy, Advice NI, Mary McManus, Living Wage NI Regional Manager, Conor Murphy, Economy Minister, Ruth Baxter, Living Wage NI Programme Officer