With over 16,000 Living Wage Employers signed up to pay a wage “that works for everyone”, almost half a million people are set for a pay boost as the Real Living Wage rates for 2025–26 have been announced and will be implemented by 1 May 2026 at the latest.
The new rates are £14.80 an hour in London (95p or a 6.9% increase from the current rate of £13.85) and £13.45 an hour across the rest of the UK (85p or a 6.7% increase from the current rate of £12.60). The rates apply to all workers over the age of 18.
These rates should not be confused with the Government’s minimum wage rate, which for those aged 21 and over is called the National Living Wage. The Real Living Wage is a higher, voluntary rate that is independently calculated to cover the actual cost of living.
A full-time worker earning the new Real Living Wage would earn £2418 a year more than a worker earning the current government minimum. In London, these figures would rise to an additional £5050.
Half of the FTSE 100 companies, including household names such as Aviva, Ikea and Burberry, as well as thousands of small businesses, have signed up to pay the Real Living Wage and commit to pay at least the Real Living Wage to all their staff as well as third-party contractors, such as cleaners and security guards.
Overall, one in seven employees, 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 [...] 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.”
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