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Real living wage to rise to £11.95 in London and £10.90 across the UK. Here's what's happening

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Hundreds of thousands of workers in the UK will see their hourly rate rise by more than 10% due to an increase in the real living wage, a voluntary employers' pay scheme that is calculated on the actual cost of living. People in London covered by the rate will see their hourly rate rise to £11.95 an hour, while those in the rest of the UK will get £10.90.

This year's increase in the real living wage has been brought forward in recognition of the sharp rise in living costs. It was originally set for November.

Almost 400,000 people working for over 11,000 real living wage employers will see their pay increase. Currently, the real living wage in London is £11.05, while in the rest of the UK it is £9.90.

Employers using the scheme should implement the rate change as soon as possible, but they have until 14 May 2023 to do so. You can check whether your employer is one of the participating companies by heading to the Living Wage Foundation website.

If you're struggling with the cost of living, see our Cost of living help guide. Alternatively, see our National minimum wage guide for more info on wages and what employers should be paying.

The real living wage is different to the 'national living wage'

MSE doesn't actually use the term 'national living wage'. That is because it was introduced in July 2015 by the then-Chancellor George Osborne, and is the lowest amount that can legally be paid to employees aged 23 or over. It is just another name for the national minimum wage. It is adjusted every April.

The 'national living wage' is different from the real living wage. The latter is the amount calculated by campaign group the Living Wage Foundation as the minimum pay workers and their families need to live.

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