In the last year, the number of employers participating in a voluntary program to offer higher wages than the legal minimum has surged by 19%, reaching a total of 16,040.

While official reports indicate a cooling labor market in the initial quarter of this year and highlight that frequent above-inflation increments to the national minimum wage have deterred some employers, an increasing number of private firms, public sector entities, and non-profits have embraced higher pay standards.

Rather than adhering to the £12.21 per hour national minimum wage applicable to workers aged over 21 since April, these participating employers pay at least a ‘Living Wage’ of £12.60 an hour throughout the UK, and £13.85 per hour in London for all employees aged 18 and over. This rate is 13% greater than the statutory minimum in the capital and 3.2% higher in other regions.

The Living Wage is determined annually by the Resolution Foundation, with oversight from the charity known as the Living Wage Foundation.

Data provided to various news sources by the commission indicates a steady enthusiasm from the private sector for this initiative, as evidenced by the 1,751 new private companies that joined the program in the 12 months leading up to May, mirroring trends found among public and charitable employers.

Notable brands that adhere to the Living Wage include Ikea, Fred Perry, and Aviva. A study conducted by Cardiff Business School for the Living Wage Foundation reveals that the initiative has yielded “modest but positive benefits” for employers, enhancing their reputation and management practices alongside the advantages gained by lower-paid workers.

Katherine Chapman, director of the Living Wage Foundation, remarked, “Despite turbulent economic conditions, the movement for a living wage continues to expand across various sectors. It demonstrates what can be achieved when civil society and businesses collaborate to raise standards and develop employment that benefits everyone.”

According to data from the Office for National Statistics, wage growth decreased to 5.6% in the three months leading to March, down from 5.9% in the preceding quarter.

Information from HMRC revealed that the unemployment rate stands at 4.5%, with the total number of payroll employees declining by 106,000 year-on-year to 30.3 million in April, alongside a reduction in job vacancies by 42,000 to 761,000. This figure has seen a decline from a peak of 1.3 million in early 2022.

The statutory minimum wage for those aged 21 and over increased by 6.7% to £12.21 an hour in April.