The Living Wage Foundation has announced an increase in its real living wage rate to £12.60 across the UK, and £13.85 in London.
More than 15,000 employers across the UK are signed up to pay the new rates for almost half a million employees. The rise is a 60p, or 5%, increase for the UK rate, and 70p, 5.3%, increase for the London rate. Employers will have six months to implement the increased rates by 1 May 2025.
The real living wage is a higher, voluntary rate for employees aged 18 and over, compared to the government’s national living wage which is set at £11.44 for those aged 21 and over, and the national minimum wage which is £6.40 for those under 18, and £8.60 for those aged 18 to 20.
The real living wage is independently calculated based on the actual cost of living.
Katherine Chapman, director at the Living Wage Foundation, said: “Low-paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amid persistently high prices. The real living wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.”
Darren Taylor, country people and culture manager, at Ikea UK and Ireland, a living wage employer, said: “A business’ success is purely driven by its people, and as a values-driven company, we care about our co-workers and their wellbeing. That’s why we’re committed to pay our co-workers a real living wage that creates a fairer, inclusive, and healthier standard of living for the many. We hope this year’s uplift, along with our enhanced flexibility and benefits offer, will provide co-workers’ with greater financial stability and the support needed to live a better everyday life.”
