What is the difference between the Living Wage and the government's 'National Living Wage' introduced in April 2016?

In April 2016 the government introduced a higher statutory minimum wage rate for all staff over 25 years of age, and referred to it as the ‘national living wage’. In 2021, this was lowered to over 23 year olds.

The government intends the higher minimum wage rate for over 23s to reach 66% of median earnings by 2024. Current estimates suggest this would mean a rise to £10.50 per hour by 2024. 

The government's minimum wage rate is separate to the Living Wage rate calculated by the Living Wage Foundation. Unlike the Living Wage Foundation's rates, it is not calculated according to the cost of living, and is therefore lower than what people need to afford a decent standard of living. 

Full time workers receiving our independently calculated Living Wage earn about £3,081 a year more than those on the government's 'National Living Wage'. This rises to £5323.50 a year in London. 

You can read our response to the 2015 budget here.