Half a Million Workers Set to Receive Pay Boosts up to £5,000
Nearly 500,000 workers in the UK are set to benefit from an increase in the real living wage, which is rising to £13.45 an hour. This adjustment marks a 6.7% increase, adding 85p to the previous rate. In London, the real living wage will increase by 6.9%, rising to £14.80 an hour.
Details of the Pay Boost
The new pay rates will be implemented by voluntary employers, with 16,000 UK companies participating. All accredited organizations have until May 2026 to comply with this increase. Any employer that gains accreditation from October 23, 2025, must adopt the new rates immediately.
- Current Real Living Wage: £13.45/hour
- Real Living Wage in London: £14.80/hour
- Increase in Amount: 85p (overall), 95p (London)
- Annual Benefit for Full-time Workers: £2,418 more than the national minimum wage; £5,050 for London workers
Growth of Accredited Employers
According to the Living Wage Foundation, the number of employers willing to pay the real living wage has grown significantly, with nearly 2,500 new businesses accredited in the past year. Notable companies that offer the real living wage include:
- Ikea
- Oxfam
- Lush
- Uniqlo
- Aviva
- Linklaters
- KPMG
Now, around one in seven employees in the UK works for an accredited living wage employer. This growth comes even as many low-paid workers face challenges from rising inflation.
Impact on Low-Paid Workers
The Living Wage Foundation’s recent research revealed that 4.5 million low-paid workers in Britain are struggling with essential living expenses. Approximately 42% have used food banks, with this figure rising to 56% among households with dependent children.
Katherine Chapman, executive director of the Living Wage Foundation, emphasized the importance of a wage that supports necessary living costs. She stated, “The new rates will significantly help workers and their families cope with the costs of rent, bills, food, and other essentials.”
Minimum Wage Context
In addition to the real living wage, the statutory national minimum wage has also seen increases. It is expected to rise from £12.21 to £12.71 per hour in April, pending recommendations from the Low Pay Commission.
Labour has proposed plans to equalize pay brackets so that younger workers, who currently receive a lower minimum wage, are compensated fairly. This development is part of a broader movement toward fair compensation for all workers in the UK.
