Real Living Wage increases

Couple happy over minimum wage increase

The real Living Wage will rise to £13.45 an hour nationally and £14.80 an hour in London

Good news for low-paid workers! Around half a million people are set for a pay rise as more than 16,000 employers have signed up to pay the new real Living Wage by 1st May, 2025.

The new rate will be £13.45 an hour across the UK, and £14.80 in London.

For someone working full time, that’s over £2,400 more a year than the legal minimum in the UK, and over £5,000 more in London.

Real Living Wage vs National Living Wage

The real Living Wage is worked out by the Living Wage Foundation (LWF). It is based on the real cost of living, like rent, food and bills. The government’s National Living Wage is different. That one is a legal minimum and it’s currently £12.21 an hour for people aged 21 and over.

The government says it has to strike a balance between helping workers and making sure businesses can afford to keep paying staff. But many say the legal minimum still doesn’t cover the basics.

Millions still struggling

Even with these increases, many workers are finding it impossible to keep up with rising prices. LWF own research shows:

  • More than 39% of low paid workers had to rely on a food bank in the past year
  • 42% low paid workers have less than £10 a week after covering their essentials
  • There are around 4.5 million jobs in the UK that still pay below the real Living Wage

Katherine Chapman from the Living Wage Foundation said:

“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.” 

Check if your employer pays it

Only employers who choose to sign up to the Living Wage campaign have to pay the higher rate. Companies like Uniqlo, Lush, and Ikea are amongst the employers committed to paying a fair wage. We can check which ones do on the Living Wage Foundation website.

Image: StockImageFactory.com

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