Real living wage rates In a significant move for the UK’s workforce, the Real Living Wage is set to increase by almost 7%, offering a much-needed boost to hundreds of thousands of low-paid employees across the country. The new hourly rate will rise from £12 to £12.85 across the UK and from £13.15 to £14.15 in London.
The Real Living Wage, unlike the government’s National Living Wage, is a voluntary benchmark calculated based on the actual cost of living — including essentials like rent, food, and transport. The rise reflects ongoing inflation pressures and the continued increase in household expenses.
More than 14,000 employers, including major companies and local councils, have committed to paying the Real Living Wage. Advocates say the increase will make a tangible difference for workers struggling to keep up with rising costs, particularly in urban areas.
Employers have until May 2026 to implement the new rate, ensuring a smoother transition for businesses while maintaining fair compensation for their staff.