Confirmation of an increase in the Real Living Wage means that nearly 500,000 workers will receive a pay raise.
The Real Living Wage is an optional wage for employees aged 18 and above, employed by an organization that is a member of the Living Wage Foundation. The concept behind the Real Living Wage is to ensure that it reflects the income required by a full-time worker and their family to cover essential expenses such as food, clothing, and household bills.
The rate will rise by 60p to £12.60 an hour across the UK and by 70p to £13.85 in London. One in nine employees now work for a business that pay the Real Living Wage. It is higher than the statutory National Living Wage wage, which is worth £11.44 an hour for workers over 21 and £8.60 for 18 to 20-year-olds.
According to the Living Wage Foundation, a full-time employee receiving the new Real Living Wage will earn £2,262 more annually compared to someone earning the current government minimum wage. Employers who are registered have until May 1 to implement the updated rates, but they are advised to do so promptly. Over 15,000 employers, such as Aviva, Everton FC, Ikea, Burberry, and Lush, already pay the Real Living Wage.
Katherine Chapman, director of the Living Wage Foundation, said: “Low-paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices. The Real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.
“It’s a challenging time for businesses too, which is why it is so encouraging to see the living wage movement continue to grow at pace. This year we reached the major milestone of 15,000 accredited employers, with half of them signing up since 2021. Employers who want to go beyond the Government’s minimum wage and ensure their workers are paid in line with the real cost of living can look to these leading employers and accredit with the Living Wage Foundation.”
Darren Taylor, country people and culture manager at furniture retailer Ikea, said: “A business’s success is purely driven by its people, and as a values-driven company we care about our co-workers and their wellbeing. That’s why we’re committed to pay our co-workers a Real Living Wage that creates a fairer, inclusive and healthier standard of living for the many. We hope this year’s uplift, along with our enhanced flexibility and benefits offer, will provide co-workers’ with greater financial stability and the support needed to live a better everyday life.”
However some business leaders have pointed out that this may affact smaller enterprises and put them off creating jobs but preferring to outsource to third parties. The next 18 months will give us all the answer.

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