What is the real Living Wage?

The real Living Wage is the only UK wage rate that meets the cost of living.

UK Living Wage

£13.45

London Living Wage

£14.80

The real Living Wage remains the only UK Wage rate calculated on the real cost of living. It is voluntarily paid by over 16,000 UK businesses who have chosen to transform millions of people’s lives and raise the bar for what decent work looks like in the UK.  

Nearly half a million employees have received a pay rise as a result of the Living Wage campaign, and we enjoy cross-party support. We have a broad range of employers accredited with the Foundation including half of the FTSE 100 and big household names including Nationwide, Ikea, Everton FC and Aviva, as well as thousands of SMEs. 

The Living Wage rates for 2025-26 will be announced on the 22nd October. Employers will then have 6 months to implement them by May 1st 2026. 

Explaining UK wage rates

The minimum wage

Government minimum for under 21s
What is it?
£10 across UK
-
Is it the law?
Statutory
What age group is covered?
School leaving age up to 21
How is it set?
Negotiated settlement based on recommendations from businesses and trade unions
Is there a London weighting?
No London Weighting

The National Living Wage

Government minimum for 21 year olds and over
What is it?
£12.21 across UK
-
Is it the law?
Statutory
What age group is covered?
21 and older
How is it set?
A % of median earnings
Is there a London weighting?
No London Weighting

The Real Living Wage

The only wage rate based on what people need to live
What is it?
£13.45 across UK
£14.80 in London
Is it the law?
Voluntary
What age group is covered?
18 and older
How is it set?
Calculation made according to the cost of living, based on a basket of household goods and services
Is there a London weighting?
Yes - Separate higher rate for London

What goes into calculating the real Living Wage?

Watch our explainer animation to understand the process of calculating the real Living Wage. 

Resolution Foundation: Real Living Wage Methodology

Find out more about the methodology behind the calculation of the 2025-26 Living Wage rates by the Resolution Foundation.

Resolution Foundation calculation report front cover for 2025-26

The Living Wage Commission: A real Living Wage

The Commission was set up in 2016 to oversee the calculation of the independent Living Wage rates in London and the UK. It is a group of leading Living Wage employers. independent experts and representatives from trade unions and civil society.

Closing the Gap report front cover

Minimum Income Standard

We use a public consultation method called MIS to inform the rate. MIS asks groups to identify what people need to be able to afford as a minimum. This is fed into a calculation of what someone needs to earn as a full-time salary, which is then converted to an hourly rate. You can read about the 2025 Minimum Income Standard here.

London Minimum Income Standard

Living costs are much higher in London than in the rest of the UK - that is why the London Living Wage is higher than the UK rate. Our calculation is based on living costs and when it is annually recalculated we take into account any fluctuation in those costs. Rent is the primary living cost that causes the differential between the two rates but we also take into account childcare, travel costs, food and household bills. Read the latest London Minimum Income Standard here.

Accredit today

Past Living Wage rates

Past Living Wage rates
Year London Living Wage UK Living Wage National minimum/National Living Wage
2003-4 £6.40 £4.50
2004-5 £6.50 £4.85
2005-6 £6.70 £5.05
2006-7 £7.05 £5.35
2007-8 £7.20 £5.52
2008-9 £7.45 £5.73
2009-10 £7.60 £5.80
2010-11 £7.85 £5.93
2011-12 £8.30 £7.20 £6.08
2012-13 £8.55 £7.45 £6.19
2013-14 £8.80 £7.65 £6.31
2014-15 £9.15 £7.85 £6.50
2015-16 £9.40 £8.25 £6.70
2016-17 £9.75 £8.45 £7.20
2017-18 £10.20 £8.75 £7.50
2018-19 £10.55 £9.00 £7.83
2019-20 £10.75 £9.30 £8.21
2020-21 £10.85 £9.50 £8.72
2021-22 £11.05 £9.90 £8.91
2022-23 £11.95 £10.90 £9.50
2023-24 £13.15 £12.00 £10.42
2024-25 £13.85 £12.60 £11.44
2025-26 £14.80 £13.45 £12.21

Who pays it?