Answer:
The living wage is supposed to be set high enough to allow people to be able to afford the basic costs of living. The basic costs of living are defined by “an adequate level of warmth and shelter, a healthy palatable diet, social integration and avoidance of chronic stress for earners and their dependents. ”[1] In many areas of the UK, minimum wage is not high enough to meet these standards especially in areas of London where costs of living are much higher than other areas of the country. The current minimum wage in the UK for people aged 21 and over is set at ?6.
9[2] whilst the current living wage rate in the UK is set at ?7. 45 and ?8. 55 in London[3]. The living wage is set at a higher rate than the minimum wage and set even higher in London as the basic costs of living in London are much higher.
It is calculated according to the basic cost of living in the UK and so should make sure that people can afford the basic necessities and not be in poverty. The living wage is a very important issue as the minimum wage is not set high enough for some people to maintain a normal standard of living.Many families earning the minimum wage are living in poverty as they can’t afford to pay the basic cost of living. When the minimum wage was first introduced in 1999 it was set at ?3. 60 for workers aged 22 and over. It has increased every year since. In 2010 the minimum wage was set at ?5.
Explanation:
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