In a city where you can barely even step out of your front door without spending twenty quid, every penny really does count. And so the news of an increase in the London Living Wage is sure to be welcomed with open arms (and wallets).
Over 150,000 Londoners will be receiving an imminent pay-rise, as it’s just been announced that the London Living Wage will be increasing from £13.85 to £14.80 per hour (an increase of 6.9%). The London Living Wage is different to the statutory minimum wage set by the government. The ‘Real Living Wage’ is the only UK wage rate to be calculated based on what is actually needed to cover living costs (including the likes of rent, bills, transport, childcare, and essential items).
The ‘Real Living Wage’ is voluntarily paid by approximately 16,000 companies across the UKand around 4,000 in the capital city. More than 150,000 Londoners will be given the pay-rise, along with almost half a million workers across the country. The Living Wage in the rest of the UK will rise from £12.60 to £13.45 per hour (an increase of 6.7%).
Employers can opt in to pay the Real Living Wagewhich is a slightly more generous amount than the government’s minimum wage. Uniqlo and the University of Salford are two of the latest companies to have gotten on board. Companies paying the higher wage have until May 1, 2026 to bring the increased rate into effect, but are being encouraged to do so as soon as possible.
Katherine Chapmanexecutive director of the Living Wage Foundationsaid: “The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the cost of rent, bills, food and other essentials, and to live with stability and security.”
Chapman added: “Despite the challenges businesses face, our movement continues to grow, with over 16,000 employers now accredited. These leading employers are showing that paying the real living wage has a far-reaching impact on staff, businesses and society.”
Find out more about the Real Living Wage here.
