Let’s Get Real On Living Wage

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The National Living Wage, the government's legal minimum, has risen to £12.21 per hour but nearly 16,000 UK employers already go further by paying the higher, voluntary Real Living Wage. 

The Real Living Wage is set by the Living Wage Foundation. It is the only UK wage rate independently calculated based on what people need to live. It currently stands at £12.60 across the UK and £13.85 in London. 

Full-time workers paid the new National Living Wage will still earn £760 less per year than those on the Real Living Wage – a shortfall that could cover nearly three months of food for a household or two months of housing and energy costs. 

In London, the gap rises to £3,198 a year. The difference could pay for almost a year’s worth of food or over four months of housing and energy costs. 

 

Increase in low paid jobs

There are now 4.5 million jobs in the UK paid below the real Living Wage (1 in 6 jobs) – which marks the largest year-on-year increase in low-paid jobs since records began.    Katherine Chapman, a director of the Living Wage Foundation, says: “The rise to the National Living Wage, the legal minimum wage, is a welcome boost for low-paid workers and will offer some protection against rising costs, yet it still falls short of the Real Living Wage. 

“With low pay surging, it’s more important than ever that employers who can afford it are choosing to provide the security of a real living wage. It has been encouraging to see that, despite rising costs across the board, we are still seeing more and more employers stepping up to join the Real Living Wage movement and 1 in 6 employees now work for an accredited Living Wage employer. They know that decent pay and secure work is not just good for workers, it’s good for business too.  “Low pay and insecure work often go hand in hand and it's been great to see a real uptick in employers choosing to provide more stable contracts and better notice periods through the Living Hours scheme.”   

 

Benefits

Brett Mendell, the MD of Thomas Kneale, a textile merchant based in Manchester and a Living Wage Employer, says: "We’ve paid the Real Living Wage since 2015 because we believe everyone should earn enough to live on. It’s the right thing to do and it makes business sense for us too. Our staff feel valued and secure, which means we have many colleagues with long service, who take pride in their work and help us build a stronger, more resilient business.   

“Even with rising costs for businesses like ours, we continue to see the benefits of paying our staff fairly. We view it as an important investment.” 

James Hennebry, CEO of Rosslyn Coffee, a London-based specialty coffee company and Living Wage Employer since 2018, says: “At Rosslyn, paying above the Living Wage has always been a non-negotiable – it’s fundamental to who we are as a business. We believe success flourishes when it’s shared: we take care of our team, who take care of our guests, who drive the commercial success of the business.” 

Sam, who works for Living Wage employer Thomas Kneale, says: “Having worked as a temp on a low paid, zero-hours contract earlier in my career, I know firsthand the challenges living on a low, unpredictable income can bring and the effect these challenges can have on a person’s health, wellbeing and general enjoyment of life.   “I rented and lived in some very unpleasant properties. I was unable to go on holidays. I rarely went out. I was constantly having to choose between one bill or another.

“Now I'm paid a real Living Wage, these problems no longer exist. I am excited about my future, I am settled in a comfortable home, and if I want to go out from time to time I can. Now all my bills are paid by direct debit and I can live my life on my own terms without the stress and anxiety of living with no money.”   

 

Picture: The Real Living Wage continues to be higher than the government’s Living Wage – and employees and employers see the benefits

Article written by Cathryn Ellis
09th April 2025

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