There are more than 180,000 workers who are struggling to cope up with the escalating inflation-beating pay rise. In the UK, the daily living wages rise along with increasing private rent, transport costs, and council tax. The new voluntary measure which is pay rate is currently being adopted by a number of employers such as Ikea, Aviva, and Burberry owing to the hourly increase from 2.9% to £9 in the country along with the similar increase from 3.4% to £10.55 in London. The Living Wage Foundation has set the bar of £1.17 higher an hour as per which the workers can meet the basic cost of living in the UK. There is also an option of the national living wage imposition by the UK government for the 25 Years and above workers.
Though the foundation has already introduced the new measures it will only be put into action by the May of next year. The statutory national living wage for those over the age of 25 will be set to £8.21 an hour right from next April compared to the previous wage of £7.83 an hour. For workers belonging to the age group of 21-24 Years the minimum wage has been increased from £7.38 to £7.70 and for those belonging to the 18-20-years-old group, the rate will rise from £5.90 to £6.15. The high cost of living has urged the British government to look into increasing the UK living wages. The inflation followed immediately after the 2016 EU referendum wherein a fall in the value of the pound soars up the cost of importing goods to the UK.
The inflation of the consumer price index remains above the government set target 2% that is 2.4% for the Bank of England. According to Threadneedle Street, the commoners have lost quite a lot to date right from the Brexit vote. The workers have to be paid a higher amount so as to live a dignified life and thus, the organizations including Liverpool FC are trying their best. The low payroll among workers by certain small firms is still prevalent so the government is using the Living Wage Foundation to overcome such a crisis situation for the betterment of its people. Companies such as Amazon have started showing humanity by declaring an inflation-beating pay rise for its employees without even signing up for the Living Wage Foundation.