Living Wage rises to £8.45

The new rate, which is reviewed every year using evidence about living standards in the UK, sees a rise of 20 pence, designed to meet the real costs of living in today’s Britain.

Reacting to the new rate, the Scottish Government urged Scottish firms and organisations to sign up as Accredited Living Wage Employers.

Scotland’s First Minister Nicola Sturgeon said: “The new Living Wage of £8.45 will be a welcome pay rise for thousands of Scottish workers and ensures people’s basic wage continues to meet the real costs of living.

“Like the Bell Group, 630 employers in Scotland are now accredited Living Wage employers and I want to see all businesses implement the new Living Wage rates as soon as possible.

“For business, paying the Living Wage makes sense - it’s an investment in people and all the evidence shows it leads to increased productivity and reduced staff absence and turnover, while sending a strong signal to customers about fairness.

“Yet we also know around 20 per cent of Scotland’s workforce earn less than the Living Wage. With low pay one of the main drivers of in-work poverty, it’s vital that employers who can pay the real Living Wage do so.

“We’ll continue to work with the Living Wage Foundation and the Poverty Alliance to encourage more businesses to recognise the benefits of paying the real Living Wage.”

Peter Kelly, director of the Poverty Alliance, said: “Today’s announcement of the new, increased, Living Wage rates of £8.45 brings a welcome pay rise to thousands of workers across Scotland.

“430,000 people in Scotland still earn less than the wage they need to get by. This is an increase on the number of people struggling since last year’s figures. That’s why it’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure their employees earn enough to cover the real cost of living.”

Katherine Chapman, director of the Living Wage Foundation, said: “As we kick off Living Wage Week today, we are celebrating the 600+ employers in Scotland and nearly 3,000 employers across the UK who lead the way on tackling low pay by paying the real Living Wage. The sheer growth of our movement shows that the Living Wage is good for people and good for business.”