- Half a million workers are set for a pay boost as over 16,000 employers are signed up to pay the real Living Wage, including IKEA, Everton FC and Aviva.
- Popular high-street retailer Uniqlo is the latest to announce it is joining the Living Wage movement.
- The real Living Wage is the only UK wage rate independently calculated based on what is needed to cover living costs. It is different from the government’s National Living Wage, which is the legal minimum employers must pay for over-21s.
- The new real Living Wage rates are now worth over £2,418 more per year in the UK than the legal minimum, and over £5,050 more in London.
- £4.2bn in extra wages has gone to low paid workers since real Living Wage campaign began in 2011.
Almost half a million people working for more than 16,000 real Living Wage Employers throughout the country are set for a vital pay boost, as the real Living Wage rates rise to £13.45 an hour across the UK (85p or 6.7% increase), and £14.80 an hour in London (95p or 6.9% increase).
Recent research by the Living Wage Foundation shows that as inflation grew over the past year, many of Britain’s 4.5m low-paid workers have struggled to make ends meet, with two in five (42%) having been forced to use foodbanks in the past year, rising to over half (56%) for low-paid workers with dependent children.
Real Living Wage vs ‘National Living Wage’
The real Living Wage is different to the government’s statutory minimum wage rate, which is called the ‘National Living Wage’ for those over the age of 21. The real Living Wage is a higher, voluntary rate that is independently calculated based solely on what is needed to cover living costs, including everyday household costs such as rent and energy bills, childcare and transport, as well as items like a warm winter coat for children, or savings for a financial emergency like a broken boiler. The Government’s rate is the legal minimum businesses are required to pay by law.
The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer and is £13.45 an hour across the UK and £14.80 an hour in London. The National Living Wage applies to those over the age of 21 and is worth £12.21 an hour.
A full-time worker earning the new, real Living Wage would earn £2,418 a year more than a worker earning the current government minimum. In London, a full-time worker on the new real Living Wage rate would earn an additional £5,050 a year compared to a worker on the current NLW.
The Living Wage movement continues to grow
Despite economic challenges in the UK, the number of employers signed up to pay the real Living Wage has continued to grow, with nearly 2,500 new accreditations over the past year. Living Wage Employers commit to paying all their staff, as well as their third-party contractors like cleaners and security guards, at least the real Living Wage. Across the UK.
1 in 7 employees now work for an accredited Living Wage Employer.
Living Wage Employers
There are now over 16,000 Living Wage Employers, with recent accreditations including Uniqlo, the University of Salford and Truro City Council. They join half of the FTSE 100 companies, household names like Aviva, Everton FC and IKEA as well as thousands of small businesses, who are choosing to pay the real Living Wage to provide workers and families with greater security and stability.
Living Hours Employerz
There are now over 250 Living Hours Employers, including Aberdeen, Aviva, and West Brom Building Society, going beyond payment of the real Living Wage to also provide a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked.
Living Pension accreditation
Nearly 90 employers who want to ensure their workers never face poverty in retirement are signed up to the Living Wage Foundation’s Living Pension accreditation, including Everton FC and L&G. Living Pension Employers provide a Living Pension savings level using either a cash £3,150 or percentage (12%) target, with a minimum of 7%, or £1,840, contribution coming from the employer.
Katherine Chapman, Executive Director of the Living Wage Foundation:
“We all need a wage that covers life’s essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs. The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.
“It remains a tough time for low-paid workers, with 4.5 million people still earning less than the real Living Wage and struggling to escape the grip of in-work poverty. That’s why we encourage as many employers as possible to do the right thing and commit to paying a wage that reflects the real cost of living.
“Despite the challenges businesses face, our movement continues to grow, with over 16,000 employers now accredited. These leading employers are showing that paying the real Living Wage has a far-reaching impact on staff, businesses and society.”
About the Living Wage Foundation
The Living Wage Foundation is the organisation at the heart of the movement ensuring everyone earns a wage to meet their needs. Through our Living Wage, Living Hours, and Living Pension accreditations, we champion and celebrate employers choosing to drive up employment standards. The Living Wage Foundation is part of Citizens UK.
What is the real Living Wage?
The Living Wage Foundation’s real Living Wage is the only UK wage rate independently calculated based on the real cost of living. It applies to all workers over 18 and is currently £13.45 across the UK and £14.80 in London. Rates are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission. Read more about how it differs from the Government’s ‘National Living Wage’ here.
Is it a guarantee of minimum wage compliance?
Simply the answer is no as the recent naming and shaming list of the DBT shows, a number of the named employers who breached NMW requirements were registered Living Wage Employers.
NMW regulations are not purely about a pay rate, but how a rate is calculated including all working time (whether paid or unpaid) and pay potentially reducing due to items such as uniform, salary sacrifice arrangements, deductions for the benefit of the employer etc
Minimum pay regulations are not just about a pay rate.
PSP 22/10/2025