Lidl UK to increase basic wage from £8.45 to £8.75 next year

One in five workers are earning below the voluntary living wage KPMG has found

Around 59 percent of those earning below the real Living Wage indicated a sharp increase in the cost of living as rising inflation bites.

The council's announcement comes at the start of Living Wage Week, when the Living Wage Foundation sets its new rates for London and the rest of the country.

Almost twice as many (17 percent) of those earning below the real Living Wage noted a decline in pay compared to those that recorded an increase (9 percent).

"The new living wage rates announced today will bring relief for thousands of United Kingdom workers being squeezed by stagnant wages and rising inflation". Employers who sign up to the Living Wage commit to pay it to all staff over the age of 18 who work regularly on their premises.

Lidl has raised its wages to bring them in line with the Living Wage Foundation rate of pay, making it the highest-paying supermarket in the UK.

John Holland-Kaye, chief executive of Heathrow - the first airport accredited with the foundation - said paying the living wage is the "right thing to do as a responsible employer".

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Younger employees are still paid the lower national minimum wage.

It differs from the government's national living wage, which replaced the minimum wage for workers aged 25 and over in April 2016. "Nine out of 10 accredited living wage employers report real benefits including improved retention, reputation, recruitment and staff motivation".

Addressing household finances, Bagnall said that although less people were earning below the RLW, those at the bottom of the pay scale were feeling the "squeeze" due to increases in the cost of living and a decline in pay. Currently, businesses do not need to pay it but can sign up to it voluntarily. This contrasted with a sustained drop in debt levels for those earning above the Living Wage.

Last year, the bargain supermarket also added 2,500 employees to its workforce.

Find a full list of all the companies who have promised to pay the Living Wage Foundation rates of pay here.

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