IN 2014, the food and drink sector went into annualised deflation for the first time in 14 years and in December, the rate of consumer price inflation halved to just 0.5%.
The impact of the economic climate had a negative impact on the living wage as companies were forced to cut back on costs.
This lead to a relatively sustained minimum wage, which saw little increase for five years.
However, as the economic landscape changes in 2015, the combination of low inflation alongside a growing economy could impact on the living wage as it could spark sustained wage growth.
For the majority of the UK the living wage was recently increased from £6.31 an hour to £6.60, which was only the second significant increase in six years. However, campaigners are calling for a rise to £7.00 when the minimum wage is adjusted next year.
The Living Wage foundations suggests that £7.85 an hour for the majority of the UK and £9.15 an hour in London is the minimum amount required for a worker to cover the basic costs of living.
At Footprint, we’d like to hear your views on the living wage, please join the discussion on Twitter and answer the poll on our website.
