Cost of Living Crisis: Number of accredited 'real' living wage employers rise in Portsmouth, Gosport, Havant and Fareham paying higher than government rates

More businesses have signed up to the voluntary living wage scheme over the past year.

This rate is provided by the Living Wage Foundation, which encourages employers to pay a ‘real’ wage which is higher than the minimum wage, and linked to living costs.

It is calculated by a group of economists and applies to employees aged 18 and over – currently standing at £9.90 an hour nationally and £11.05 in London.

The government's living wage stands at £9.50 per hour for people aged 23 and over, and £9.18 for over 21s.

Local Authority figures show there are now 13 accredited real living wage employers in Portsmouth as of the start of July.

This has risen from nine last year.

There are four of these employers in Gosport, rising from three last year, eight in Fareham, increasing from five, and 11 in Havant, which is higher than the previous figure of seven.

Katherine Chapman, director of the Living Wage Foundation, said the cost-of-living crisis has made increasing wages for the low-paid ‘more important than ever’.

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She said paying the living wage is not only ‘the right thing to do for struggling workers and families, but it’s also good for businesses, with employers benefitting from greater staff morale and productivity, and reduced staff absenteeism and turnover’.

The foundation announced in May that 10,000 employers had signed up to the scheme – covering nearly 350,000 workers.

As of July, the figure stood at 10,765, increasing from 8,107 in 2021 – 892 in the south east.