Living Wage increase sees £400 pay rise to people across UK

People across the UK could see a pay rise of up to £400 a year with the rise in the living wage today.

The Living Wage is an opt-in scheme which has seen employers across the UK agrees to pay a fixed rate above the minimum wage designed to fit the cost of living.

The Living wage has been raised to by 25p to £8.80 in London and by 20p to £7.65 in the rest of the UK per hour of work.

The minimum wage currently sits at the considerably lower sum of £6.25 per hour  meaning that someone working an average week of 37.5 hours would be earning close to £53 extra a week.

Labour Leader, Ed Millaband has said that he would offer a 12-month tax break for all firms which took on the living wage if Labour is elected in the next general election.

The rise was announced by London Mayor Boris Johnson at an event in Great Ormond Street Hospital today.

Boris Johnson, said: “More and more London firms are recognising the benefits of fair remuneration for all of their workforce. Paying the London Living Wage ensures hard working Londoners are helped to make ends meet, providing a boost not only for their personal quality of life but delivering indisputable economic dividends to employers too.

At the London event Boris Johnson was joined on stage by Lacey Green, a bar worker from Faucet Inn, the first pub chain to sign up to the campaign.

Lacey Green, said: “This has made a big difference to me and my 5 year old son Tyler. I can now send Tyler to karate and football after school. We couldn’t afford to do that before.”

Employers including Lush, financial firm Deloitte and several councils are signed up to cover the Living Wage and champion the cause.