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Gap widens between Living Wage and NMW

New rates for the Living Wage have been announced. They are now £8.80 for London and £7.65 for the rest of the UK. This is in comparison with the National Minimum Wage and National Living Wage (NMW) which was raised to £6.31 at the beginning of October.

The gap between the Living Wage and the NMW has continued to widen. In London, the Living Wage has been calculated by the Greater London Assembly (GLA) since 2005 when the difference between them was £1.65 (33 per cent of the NMW). The difference last year was £2.36 (38 per cent), and it has now risen to £2.49 (39 per cent).

Meanwhile, the difference between the NMW and the Living Wage for the rest of the UK has risen from £1.12 (18 per cent) in 2011 when the Centre for Research in Social Policy began to calculate the rate, to £1.34 (21 per cent) today.

The announcement comes at a time when 'economic recovery without prosperity' - modest growth but stagnating wages and rising costs of living - has been given much media coverage.

Figures recently released by consultants KPMG revealed that the number of people paid less the Living Wage has increased from 4.8 million to 5.2 million in the last year.

Acas can visit your organisation to develop practical solutions to a range of issues related to pay and your obligations with the National Minimum Wage and National Living Wage. Visit Pay and reward: how Acas can help and the Acas Training and Business Solutions area for more information.

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