Almost half a million workers paid the voluntary so-called real living wage are set to receive an increase after new rates were announced
Almost half a million workers paid the voluntary so-called real living wage are set to receive an increase after new rates were announced. The hourly rate will rise by 85p to £13.45 an hour, or 6.7%, and by 95p to £14.80 an hour in London – a 6.9% increase. The improved rates will be paid by the growing number of real living wage employers, which now total more than 16,000. This is likely to take effect in April 2026.
This year’s rise means a full-time worker earning the real living wage will take home £2,418 more per year than someone on the Government’s minimum wage, and £5,050 more in London, said the Living Wage Foundation, which sets the rates.
The foundation said that 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. Anyone aged 18 and over is eligible for the London Living Wage if their employer is accredited by the Living Wage Foundation, as the wage is based on the cost of living in London. Businesses must be accredited by the Living Wage Foundation to be recognized as a Living Wage employer.
The 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. One in seven employees across the UK now work for an accredited living wage employer.
Katherine Chapman, executive director of the Living Wage Foundation, said: “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.”
Responding to the Living Wage Foundation’s announcement of a new £14.80 London Living Wage hourly rate, Muniya Barua, Deputy Chief Executive at BusinessLDN, said: “These are clearly challenging times for businesses and individuals alike, but for those firms that feel able to pay the London Living Wage there are a host of benefits.
“Becoming a Living Wage Employer not only demonstrates your social responsibilities but can also provide a competitive edge over rivals, for instance by boosting recruitment and retention of talent or by helping to win new contracts.
“To maximise the number of firms who can go the extra mile and pay the London Living Wage, it’s vital that the upcoming Autumn Budget doesn’t heap further costs on to businesses as they seek to recruit, retain and train the talent they need to thrive.”
Unison general secretary Christina McAnea said: “This sets a clear benchmark for the rate of pay needed to keep workers out of poverty.
“Low-paid staff working for fair employers are the ones who’ll see the benefits of this rise. But for most workers in public services, it’s the Government’s responsibility to make sure they’re on a decent rate.
“Workers can’t give their all for the public if they’re unable to meet the bills and feed their families. Thousands of NHS staff in particular will see their pay fall even further behind the real living wage rate.
“That risks the health service losing many of those on the lowest pay bands, such as porters and cleaners, to supermarkets and others willing to match the hourly rate.
“Ministers have to recognise this, ditch the discredited NHS pay review body system and work with unions to put it right.”
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