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First minister confirms rise in the living wage

First Minister Nicola Sturgeon cuts a cake to mark an increase in the living wage
First Minister Nicola Sturgeon cuts a cake to mark an increase in the living wage

The first minister has announced a rise in the living wage to £8.45 an hour.

Nicola Sturgeon yesterday confirmed a 20p increase in the rate – a move she claimed would help tackle in-work poverty.

The new voluntary rate – which is determined by the Living Wage Foundation – is paid by companies who have signed up to the scheme to workers over the age of 18.

It is thought the move will increase the pay-packets for thousands of workers across Scotland.

Speaking on a visit to the Bell Group in Airdrie yesterday, the first minister said: “The new living wage of £8.45 will be a welcome pay rise for thousands of Scottish workers and ensures people’s basic wage continues to meet the real costs of living.

“Like the Bell Group, 630 employers in Scotland are now accredited living wage employers and I want to see all businesses implement the new living wage rates as soon as possible.”

Ms Sturgeon said it “makes sense” for companies to pay the £8.45 an hour rate.

She added: “Yet we also know around 20% of Scotland’s workforce earn less than the living wage.

“With low pay one of the main drivers of in-work poverty, it’s vital that employers who can pay the real living wage do so.”

Peter Kelly, director of the Poverty Alliance said thousands of workers would benefit from the pay rise.

But he added: “430,000 people in Scotland still earn less than the wage they need to get by.

“This is an increase on the number of people struggling since last year’s figures.

“That’s why it’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure their employees earn enough to cover the real cost of living.”