Thousands of London workers are set to receive a pay rise as the Real Living Wage increases to £15.45 an hour.
The 65p increase, announced by the Living Wage Foundation, is part of a UK-wide rise that will also see the Real Living Wage rise to £14.10 per hour outside the capital.
Who benefits
Nearly half a million workers employed by almost 17,000 organisations that have voluntarily signed up to pay the Real Living Wage will benefit from the increase.
Emily Sawh, co-director of the Living Wage Foundation, said: “Today’s increase to the Real Living Wage will make a massive difference to hundreds of thousands of workers and their families up and down the country.”
“They will be over £1,250 better off this year thanks to the rise, helping them achieve the decent standard of living they need to thrive.”
25 years of the campaign
This year marks the 25th anniversary of the Living Wage campaign, which began as a hopeful idea driven by low-paid workers in east London organising for decent pay.
It has grown into one of the most successful campaigns of the 21st century, with nearly 17,000 employers committed to decent pay and nearly £5 billion in additional earnings secured for low-paid workers.
Of that total, almost £700 million was delivered in the past year alone.
Ms Sawh said: “It has grown into one of the most successful campaigns of the 21st century, with nearly 17,000 employers committed to decent pay for all their workers and billions of pounds back in the pockets of those who need it most.”
Higher than the legal minimum
The Real Living Wage is a voluntary rate. It is higher than the government’s National Living Wage, which currently stands at £12.71 per hour for workers aged 21 and over.
The gap — £2.74 an hour in London — reflects the higher cost of living in the capital. For a full-time worker, that’s a difference of over £5,000 a year.
Employers sign up voluntarily, committing to pay all their staff at least the Real Living Wage. Over the past year, more than 2,000 employers have joined the scheme, including Uniqlo, the Department for Business and Trade, and Coventry Building Society.
In-work poverty
Despite this progress, Ms Sawh warned that in-work poverty remains a widespread issue.
She said: “Despite the Living Wage campaign’s monumental impact on wages in the UK, there are still millions of workers trapped in in-work poverty and struggling every day to make ends meet.”
“They’re forced to skip meals, fall behind on bills and visit foodbanks.”
“That’s why we urge employers to do the right thing by signing up to pay the Real Living Wage and providing workers with the decent standard of living they need to thrive.”
What it means for London
London has some of the highest living costs in the world. Rent, transport and childcare all cost more here than anywhere else in the UK.
For low-paid workers — cleaners, security guards, hospitality staff, care workers — the Real Living Wage can be the difference between getting by and falling into debt.
The £15.45 rate is calculated based on the actual cost of living, not political considerations. It’s what the Living Wage Foundation says people need to earn to afford the basics and have a little left over.
For employers, signing up is a statement of values. For workers, it’s money in their pockets. And for London’s economy, it’s spending power in local shops and businesses.
The bigger picture
The rise comes at a time when many households are still feeling the squeeze from years of high inflation. While inflation has eased, prices remain high — and wages for the lowest-paid have struggled to keep up.
The Living Wage Foundation’s work is a reminder that pay is not just an economic issue. It’s about dignity, security and the ability to live a decent life.
As Ms Sawh puts it, the campaign began with low-paid workers in east London organising for decent pay. Twenty-five years later, that organising has put billions back in workers’ pockets.
The question now is how many more employers will join — and how many more workers will see their pay rise to £15.45.
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