'Real' Living Wage Increases Are Announced

The Government's plans for a National Living Wage have been branded "pitiful" following the latest upgrades to voluntary living wage levels.

Green party leader Natalie Bennett spoke out after the Living Wage Foundation announced a new wage rate of £8.25 per hour.

It (Other OTC: ITGL - news) represents an increase of 40p with the higher sum being paid by more than 2,000 accredited employers, including Lloyds Banking Group (Other OTC: LLOBF - news) , Unilever (NYSE: UL - news) and Richer Sounds.

London Mayor Boris Johnson later confirmed that the London Living Wage was to rise by 25p an hour to £9.40.

Both figures are significantly above the current national minimum wage of £6.70 and the Government's pending National Living Wage for those aged 25 and over.

That is due to kick in next April (LSE: 0N69.L - news) at an initial rate of £7.20 per hour.

However, even at that level, a number of retailers have warned in recent months that the increase in costs is likely to be passed on to customers while a separate study said it would put 80,000 jobs at risk in the convenience store sector.

Foundation director, Sarah Vero, said: "Today we are celebrating those 2,000 responsible businesses that are voluntarily paying the Living Wage to their staff.

"These employers are not waiting for Government to tell them what to do.

"Their actions are helping to end the injustice that is in-work poverty in the UK now."

The TUC union organisation and auditors KPMG believe there are currently six million workers - almost a quarter of the UK workforce - paid less than the Living Wage.

Ms Bennett said the Government's National Living Wage did not go far enough to secure a "real" level of pay.

"George Osborne's offer of £7.20 an hour for over 25-year-olds from next April is pitiful in comparison to this real living wage," she said.

"With people now needing to earn £8.25 an hour to sustain a decent standard of living, it is no wonder that our current minimum wage leaves people reliant on food banks and struggling to keep a roof over their head."