More Northamptonshire firms sign up to ‘real’ living wage as inflation hits 10.1 percent amid cost of living crisis

More firms in Northamptonshire are signing up to the voluntary living wage scheme as inflation hit another 40-year high.

Consumer Prices Index inflation (CPI) reached 10.1 percent last month, up from 9.4 percent in June, the Office for National Statistics (ONS) confirmed on Wednesday (August 17) — the biggest monthly jump for 40 years.

The latest rise in inflation comes after separate data released on Tuesday (August 16) showed workers are suffering a record real-term pay slump as prices sky-rocketed.

The Living Wage Foundation encourages employers to sign up to pay a “real” living wage, which is higher than the minimum wage and pegged to living costs.

The rate, which is calculated by a group of economists and applies to employees aged 18 and over, currently stands at £9.90 per hour across the UK and £11.05 in London, to reflect higher prices in the capital.

For comparison, the Government's living wage stands at £9.50 per hour for those aged 23 and over, and £9.18 for over 21s.

Figures shared with this newspaper show there were 39 accredited real living wage employers in West Northamptonshire at the start of July — up from 31 a year ago and just nine in 2017.

Of those 20 were in Northampton, 10 in South Northamptonshire and nine in Daventry.

In Northamptonshire, there were 23 accredited real living wage employers — seven in Corby and six each in Kettering and Wellingborough — compared to ten from five years ago.

Last month’s latest inflation increase was largely down to food prices and staples including toilet rolls and toothbrushes, according to the ONS.

Grant Fitzner, ONS chief economist, said: “Food prices rose notably, particularly bakery products, dairy, meat and vegetables, which was also reflected in higher takeaway prices.

“The cost of both raw materials and goods leaving factories continued to rise, driven by the price of metals and food respectively.”

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”.

She added paying the living wage is not only “the right thing to do” for struggling workers and families, but it’s also good for businesses as employers benefit from improved staff morale and productivity and reduced absenteeism.

The foundation announced in May that 10,000 employers had signed up to the scheme – covering nearly 350,000 workers, or around one in 13 employees in the UK.

Across the East Midlands, there are 325 real living wage employers, an increase from 105 in 2017.

Despite this, many UK workers are still on low pay.

The Office for National Statistics estimated that in April 2021 nearly 300,000 employees were paid below the Government's living or minimum wage, excluding those furloughed at the time, with service workers particularly likely to suffer low pay.

Latest Bank of England estimates suggest inflation could hit 13 percent later this year.

The Department of Business, Energy and Industrial Strategy says the government is “determined to make work pay”.

A spokesman added: “We know the pressures people are facing with rising costs, which is why we have continually taken action to help households by phasing in £37 billion worth of support.”