About the Living Wage

What is the Living Wage?

A number 

An hourly rate set independently and updated annually. In London the rate is calculated by the Greater London Authority, and outside London by the Centre for Research in Social Policy. 

Good for Business 

An independent study of the business benefits of implementing a Living Wage policy in London found that more than 80% of employers believe that the Living Wage had enhanced the quality of the work of their staff, while absenteeism had fallen by approximately 25%.

Two thirds of employers reported a significant impact on recruitment and retention within their organisation. 70% of employers felt that the Living Wage had increased consumer awareness of their organisation’s commitment to be an ethical employer.

Good for the Individual  

A Living wage affords people the dignity to provide for themselves and their families. 

75% of employees reported increases in work quality as a result of receiving the Living Wage.

50% of employees felt that the Living Wage had made them more willing to implement changes in their working practices; enabled them to require fewer concessions to effect change; and made them more likely to adopt changes more quickly.

Good for Society 

The Living Wage campaign was launched in 2001 by parents in East London, who were frustrated that working two minimum wage jobs left no time for family life. Over 10,000 London families have been lifted out of working poverty as a direct result of the Living Wage. 

The Rate

The London Living Wage is currently £8.30 per hour.

The figure is set annually by the Greater London Authority and covers all boroughs in Greater London.

You can view the 2011 GLA report which explains how the London figure is calculated here.

The National Living Wage for outside of London is currently £7.20 per hour.

The figure is set annually by the Centre for Research in Social Policy at Loughborough University.

You can view the report which explains how the National figure is calculated here.

Accredited Living Wage Employers must implement the new rate as soon as possible following the annual announcement.

The Foundation

Living Wage Foundation provides advice, support and accreditation to Living Wage employers 

Accredited employers are entitled to a licence to use the Living Wage employer mark. 

The accreditation process is simple and is open to employers already paying the living wage, or those committed to an agreed timetable of implementation.  

Please see the Our Work page for more information.