The real living wage will increase by nearly 7%, helping low-paid UK workers. The hourly rate will rise by 95p to £14.80 in London and by 85p to £13.45 nationwide.
Following the announcement that the real living wage paid voluntarily by 16,000 UK employers will increase to £13.45 per hour, over half a million workers will receive a salary bump.
More than half of the FTSE 100 firms pay the actual living wage, which is determined annually based on the cost of necessities and is different from the national living wage, which is a statutory minimum.
Employers can agree to pay the more generous rate, which was born out of a long-running campaign about the challenges of surviving on poverty wages. The University of Salford, the municipal council of Truro, and the Japanese apparel retailer Uniqlo are among the most recent to sign up.
Nationwide, the real living wage will increase by 85p per hour, or 6.7%, to £13.45. It will increase by 95p, or 6.9%, to £14.80 per hour in London. Living wage employers are urged to implement the increase as quickly as possible, although they have until May 1st to do so.
According to a recent study by the Living Wage Foundation, which determines the rates annually, 42% of low-paid workers in the UK have turned to food banks during the previous 12 months.
“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,” stated Katherine Chapman, executive director of the foundation.
Since George Osborne relaunched the minimum wage, the national living wage has also increased dramatically. The independent Low Pay Commission has not yet given Rachel Reeves, the chancellor, its final decision on the matter, but it is anticipated to be set at approximately £12.71 starting in April.
Additionally, the government’s minimum wage only fully applies to individuals over the age of 21, while genuine living wage firms guarantee to pay it to all individuals over the age of 18.
Some companies even go so far as to agree to become “living hours” employers, guaranteeing at least 16 hours of work per week, a month’s notice of shift patterns, and a contract that matches hours worked—all issues that surfaced from studies conducted among low-paid workers.
“Our movement continues to grow, with over 16,000 employers now accredited, despite the challenges businesses face,” Chapman continued. These top employers are demonstrating the profound effects that paying the true living wage has on employees, companies, and society.
“We’ve paid the real living wage for over ten years, and we still hear from our people of the pride that it brings and the difference that it makes,” stated Matt Sparkes, sustainability director at Linklaters LLP. More than ever, it shows a concrete dedication to justice, decency, and doing the right thing.
On October 22, 2025, the article’s text and subheading were changed. The true living wage will rise in April 2026, according to a previous version, but living wage firms must implement the increase by May 1st.