Thousands of workers benefit from a rise in the ‘living wage’

Posted by Michael Bolt in Personal Finance on 12 November 2014 - Michael worked as a Credit Analyst at checkmyfile until 2015

The UK ‘living wage’ has increased by 20p to £7.85, a rise which is set to benefit approximately 35,000 workers.

The living wage is a voluntary hourly wage rate based on the amount needed to cover the basic cost of living in the UK and is set on an annual basis by the Living Wage Foundation. It is distinct from the compulsory National Minimum Wage, which is currently set at £6.50 an hour for people over 21 years of age.

Following the recent rise in the living wage, it now stands at some 21% higher than the compulsory national minimum wage. Additionally, the London living wage has also increased to £9.15 an hour from £8.80, representing a 4% increase.

Calculated by the Centre for Research in Social Policy at Loughborough University, the UK living wage is an informal benchmark and does not represent an enforceable pay rate like the minimum wage does. The London living wage, on the other hand, is calculated distinctly by the Greater London Authority. It is designed to provide a relatively basic but decent standard of living for its recipients.

The living wage has now been adopted by a thousand employers across the country including a range of employers from Barclays to Transport for London. It is expected that the increase in the living wage could benefit as many as 35,000 people.

Figures released by Citizens UK, the alliance behind the living wage campaign, shows that the number of employers that pay the living wage rate has doubled in the past year.

Despite the increase in the number of firms paying its employees the living wage, a recent report by the accountancy firm KPMG has found that more than 22% of the working population earn less than the 2013 living wage rate (£7.65 an hour). This equates to some 5.24m workers earning less than the living wage threshold. Younger workers, women and those who work part time were found to be more likely to earn less than the living wage rate, according to the statistics released by KPMG.

The move to increase the living wage has not been welcomed by all, with some business groups having voiced their concerns. The Institute of Directors says that it would rather focus on keeping people in employment, even if it meant lower wages. It has also warned that some employers may struggle to pay it.

Rhys Moore, director of the Living Wage Foundation, says low pay is a strain on the public purse, as "firms that pay the minimum wage are seeing their workers' pay topped up through the benefits system".

The Cost of Incorrect Information on Your Credit Report

Your credit file is compiled from a number of different sources, including payment history from each of your lenders (past and present) and public data as reported by local authorities and courts. The majority of people find that everything held about them is correct, but due to the large amount of information being shared, errors in the information reported can happen, which can lead to issues when you go to apply for credit.

Published on 2 Feb 2018 by Tom Blandford

Full Article

Your Guide to Open Banking

On 13 January, the UK banks embarked upon arguably one of the biggest changes to personal finances since the introduction of computers. Open Banking is aiming to make it easier for banks, lenders and consumers to access and share information, with a view to creating new products and opportunities through innovation and increased competition.

Published on 15 Jan 2018 by Jamie Mackenzie Smith

Full Article

HMRC Bans Credit Card Tax Payments

From 13 January 2018, it will no longer be possible for consumers to use a personal credit card to make a payment on HMRC’s Self-Assessment tax portal. Historically, this has been a popular option as it allows what is often a considerable sum to be deferred.

Published on 12 Jan 2018 by Tom Magor

Full Article

How to Get the Best Deal When Buying a New or Used Car

Buying a new car is both exciting and expensive, but if you know where to look and when, you can grab yourself a bargain. If you take a little time to look into finance or loan deals as well, you can bring down the overall costs significantly.

Published on 11 Jan 2018 by Kevin Pearce

Full Article

Are football clubs exploiting their fans

With Premier League teams under huge pressure to remain in the top flight of English football, the amount lavished on transfer fees and player wages have soared in recent years.

Published on 8 Jan 2018 by Sam Twyford

Full Article

What The 2017 Autumn Budget Means For First-Time Buyers

Wednesday’s autumn budget brought great news to would be first-time homeowners: if you’re buying a home up to the value of £300,000, you won’t have to pay stamp duty for the property. This, the Conservative Party estimate, will benefit 80% of first-time buyers, saving them potentially thousands of pounds on the total cost.

Published on 28 Nov 2017 by Jamie Mackenzie Smith

Full Article

Blacklists - Ten things you probably didn't know

1. Blacklists are not unlawful. No lender is compelled by law to give credit or to give any reason when declining credit. Each may consult several sources of information before making a decision, including any form of list that may exist. Any list containing personal data is automatically regulated by the Data Protection Act 1998.

Published on 9 Oct 2017 by Barry Stamp

Full Article

Is a credit building card a good idea

A credit building credit card is most often used by people that are either looking to improve their credit rating or take out their first credit card.

Published on 24 Mar 2017 by Kelly Luff

Full Article

Which Credit Report Information Can Landlords See

Whenever you rent a property, you will be required to pass some checks set by the landlord or letting agent to prove that you will be a good tenant and that you’ll be able to afford to rent the property.

Published on 7 Mar 2017 by Kevin Pearce

Full Article

Impacts of late payment on your credit card agreement

We’ve all done it before – had that mad panic when we’ve forgotten to pay a bill. But what happens if you do forget to pay your credit card by the monthly repayment date?

Published on 20 Feb 2017 by Kelly Luff

Full Article


We have loads of great customer reviews