Earning Well, Living Smart: How to Understand Wages

Jerome Cartwright and Zaryab Mahmood, Southway Housing

Read this article to increase your knowledge and understanding of the differences between wage types and what they are and how to manage them.

Earning Enough to Truly Live

Understanding the Real Living Wage is an important part of financial education, as it shows the difference between just earning and truly affording life’s essentials. It helps people to see how fair pay connects budgeting, wellbeing and the real cost of living.

What is the Real Living Wage?

The Real Living Wage is a voluntary hourly rate calculated to reflect what people need to live off. This helps people to cover essentials like, rent, food, travel and utilities. Currently the Real Living Wage in the UK is £12.60 per hour which is 9.92% lower than the Real Living Wage in London which is £13.85 per hour. Financial Education teaches people how to manage their money well such as budgeting, saving and avoiding debt.

a man in a room sitting behind a desk on a laptop

Who in Greater Manchester offer The Real Living Wage?

You can find out which employers in Greater Manchester offer by checking out the Living Wage Foundation’s website, which lists all accredited employers. Local councils and the Greater Manchester Living Wage Campaign also share updates on which businesses pay it. You can also find Financial Education support by checking out Manchester Money Ltd who offer free financial wellbeing programmes to firms (clinics, seminars, 1-to-1 appointments) that cover things like budgeting, debt management, savings, etc.

What’s the Difference?

The Real Living Wage is a voluntary wage designed to cover what people truly need to afford everyday living costs. The National Living Wage and Minimum Wage are legal minimums set by the government – the first for workers aged 21 and over, and the second for younger workers and apprentices.