�°������ϲʹ�������

By Rachel Lawler

 

The Living Wage Foundation has increased its suggested living wage to £8.75 an hour in England and £10.20 an hour in London.

 

More than 3,600 employers use the voluntary scheme to set staff wages, with the figures based on the average cost of a selection of household goods and services.

 

This year the rate has increased by 30p an hour in England and 45p an hour – a rise of 3.6% and 4.6% respectively.

 

The living wage is still significantly higher than the legal minimum set by the government’s National Minimum Wage and National Living Wage.

 

Currently, those aged 25 and over must be paid at least £7.50 an hour, for those aged 21 to 24 the minimum rate is £7.05 an hour and for those aged 18 to 20 the rate is £5.60.

 

Those aged 18 and under must be paid at least £4.05 an hour and apprentices must be paid a minimum of £3.50 an hour.

 

Both the National Living Wage and National Minimum Wage are reviewed every April.

 

The average wage in the early years sector is £8.45 an hour, according to research from Ceeda.

 

Katherine Chapman, director at the Living Wage Foundation, said: “In-work poverty is today’s story. New figures out yesterday show that 5.5 million people are still paid less than the real Living Wage.”

 

The Alliance has warned that increase in the statutory National Living Wage and Minimum Wage will put additional pressure on the early years sector if they are not met with sufficient funding.

 

Neil Leitch, chief executive of the Alliance, said: “As a country we are privileged to have such an experienced and passionate childcare workforce. But, with early years pay falling well below the national average, we are struggling to recruit and retain quality staff. Many providers would love to pay staff the living wage but, until the government funds the sector adequately, such an increase will be impossible.”

 

The Alliance’s Fair Future Funding campaign is calling for the government to recognise the true cost of its funded childcare offer and reverse its proposal to freeze funding rates until 2020.

 

You can sign up as a supporter of the campaign .