More than 210,000 workers across all employment sectors are set for a pay rise, following increases to the UK Living Wage and the London Living Wage.
The Living Wage Foundation is raising the UK Living Wage to £9.30 per hour, representing an increase of 30p per hour, while the London Living Wage rises to £10.75 per hour, representing an additional 20p per hour.
The UK rate is £1.09 per hour more than the government minimum wage (for over 25s) and the London Living Wage is £2.54 per hour higher.
According to the Living Wage Foundation, a full-time worker paid the £9.30 real Living Wage will receive more than £2,000 in additional wages compared to current Government minimum – equivalent to nine months of a typical family’s food and drink bill. In London a full time worker will receive £5,000 more per year.
- National Living Wage increases could have 'devastating' impact on the sector
- Early Years organisations fear that increases in the National Living Wage will place pressure on the sector
Impact on nursery employers
With staff pay currently nursery business’s greatest overhead, this latest rise will have implications for staffing and sustainability.
At National Day Nurseries Association’s, Jonathan Broadbery, head of Policy and External Relations, said: ‘The Real Living Wage is an important benchmark on better pay for workers in traditionally low-paid sectors, which childcare has been.
‘We know that nurseries work hard to properly reward their staff but these businesses are being hamstrung by government underfunding of childcare places for two, three and four-year-olds.
‘The impact will be greatest on nurseries in Scotland where paying staff the Real Living Wage is one of the National Standard requirements for delivering 1140 hours of funded childcare to three and four-year-olds from next August. Now that the Living Wage has increased by 30p an hour, local authorities there must take this into consideration when setting their rates for nurseries. These rates must allow nurseries to be sustainable and able to continue investing in quality of provision.’
Analysis from IHS Markit for KPMG finds that 5.2 million workers  are still paid under the real Living Wage; the lowest figure for seven years.