Real living wage to rise by nearly 7%  – what it means for you

The real living wage is set to rise across the UK, giving a much-needed pay boost to hundreds of thousands of workers.

What’s changing?

• across the UK, the real living wage will increase by 80p to £13.45 an hour, a 6.7% rise
• in London, it will rise by 95p to £14.80 an hour, a 6.9% increase

Who will benefit?

Around 500,000 workers are expected to benefit from the rise, as more than 16,000 employers are now committed to paying the real living wage.

When will the increase take effect?

Employers have until 1 May 2026 to bring in the new rate, though they’re encouraged to do so as soon as possible.

What is the real living wage?

The real living wage is the only UK wage rate based on the actual cost of living. It covers essential household costs like:

• rent and energy bills
• childcare and transport
• warm clothing for children
• savings for emergencies, like a broken boiler

It's different from the government's national living wage, which is the legal minimum employers must pay to workers aged 21 and over.

How much more will workers earn?

• a full-time worker on the new real living wage will earn £2,418 more per year than someone on the current government minimum
• in London, the difference is even bigger, worth an extra £5,050 a year

How many employers are involved?

There are now over 16,000 living wage employers, and that number is growing. Nearly 2,500 organisations joined in the last year alone.

Why it matters

Recent research by the Living Wage Foundation found that 42% of low-paid workers in the UK had to use food banks over the past year.

Katherine Chapman, executive director of 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.”