The real living wage is going up – what it means for you

Good news if you’re paid the real living wage: your hourly rate is going up.

More than half a million workers across the UK are set to benefit, with some earning over £1,000 more a year.

Here’s what you need to know about the increase, how much more you could earn and what it means for you.

When does the new rate start?

The new real living wage rates take effect today, 15 October, 2026.

What’s the real living wage?

The real living wage is an independently calculated hourly rate set by the Living Wage Foundation (LWF).

It’s based on the actual cost of living, taking into account what you and your family need to cover everyday essentials, including:

• your rent and energy bills
• your childcare and transport costs
• warm clothing for your children
• savings to cover unexpected expenses, such as a broken boiler

It’s different from the government’s national living wage, which is the legal minimum hourly rate employers must pay eligible workers aged 21 and over. This rate is currently £12.71 an hour.

How much more will you earn?

If your employer pays the real living wage, your hourly rate will increase to:

• £14.10 an hour across the UK - an increase of 65p, or 4.8%
• £15.45 an hour in London - an increase of 65p, or 4.4%

That extra money could make a real difference to your household budget, helping you manage rising bills and cover the things you need.

According to the LWF, if you work full time, you could earn around £2,700 more a year than someone paid the government’s minimum wage.

How many employers pay the real living wage?

You’re not alone if you benefit from the increase. Nearly 17,000 employers have signed up to pay the real living wage, helping almost 500,000 workers receive a pay rise of more than 4%. That’s estimated to be around one in seven workers.

Why does the increase matter?

A higher hourly rate means more money in your pocket to help you cover the cost of everyday life.

Whether you’re paying your rent, keeping your home warm, covering childcare or putting something aside for an unexpected bill, every extra pound can help.

Emily Sawh, Co-director of the Living Wage Foundation, said:

“Today’s increase to the real living wage will make a massive difference to hundreds of thousands of workers and their families up and down the country. They will be over £1,250 better off this year thanks to the rise, helping them achieve the decent standard of living they need to thrive.”