Arlingclose has formally joined 15,000 other UK employers in becoming a Living Wage Employer, as recognised by the Living Wage Foundation.
This means we pay all employees over 18, as well as anyone working for more than two hours a week on our premises, the London Living Wage of £13.15 per hour (rising to £13.85 from 1st May 2025) for staff based in London and £12.00 per hour (rising to £12.60 from 1st May 2025) for staff based outside London. This includes apprentices, part-time employees, and temporary staff such as interns.
The ‘Living Wage’ and, in London, the ‘London Living Wage’, sometimes referred to as the ‘Real Living Wage’, are voluntary rates of pay set above the legal minimum. The legal minimum wage is, somewhat confusingly, called the ‘National Living Wage’ for those over the age of 20, with the exception of first-year apprentices, and is currently £11.44 per hour (rising to £12.21 per hour from 1st April 2025). The ‘National Minimum Wage’ applies to those under 21 or apprentices in their first year, and currently ranges between £6.40 and £8.60 per hour (rising to £8.60 to £10.00 from 1st April 2025).
So how is this voluntary ‘Living Wage’ calculated, and what does it aim to achieve beyond the legal minimum? The Living Wage Foundation, established in 2011, promotes a wage that enables employees not just to cover the basics but to lead a dignified life and participate in society. The rate is determined based on the cost of a basket of goods deemed essential to achieve this standard.
The composition of this basket is decided by focus groups representing different household types. It includes clear necessities such as rent, food, and utility bills, alongside other considerations; should, for example, being able to buy school uniforms, afford a haircut, or save for retirement be considered part of a decent standard of living? The calculation takes into account different household structures and available benefits. It also reflects common living arrangements; for example, outside London, a single person living alone is assumed to rent a one-bedroom flat, whereas in London, they are assumed to live in a shared household, in line with widespread practice. Recent adjustments have been made to reflect that, in low-income households with children, it is rare for both parents, or for a single parent, to work full-time hours.
While low pay is uncommon in the financial services industry in which Arlingclose operates, a real living wage is far from routine for new starters, apprentices, and interns. It remains relatively common for interns, even at large and profitable firms, to be expected to work unpaid. This practice has been criticised for restricting social mobility, particularly in high-cost cities such as London, where the financial burden of gaining work experience can be significant. Another issue that has drawn scrutiny, and sometimes public protests, is the low pay of cleaners, concierges, and other workers who maintain office premises. These roles are often outsourced to property management companies or agencies, creating a stark contrast between highly profitable firms, their well-paid employees, and those responsible for keeping their offices running.
By committing to the Living Wage, Arlingclose and other businesses help ensure that everyone who contributes to their success is paid fairly and can maintain a decent standard of living.
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