Real living wage to rise to at least £13.45 an hour – here's what you need to know
Almost half a million workers will soon see their hourly pay rise thanks to an increase in the 'real living wage' – a voluntary employers' pay scheme based on the cost of living. If you work for one of the more than 16,000 employers who are signed up, you'll see your pay rise to £13.45 an hour (up 85p), or to £14.80 an hour (up 95p) in London.
Employers are encouraged to implement the new rates – which apply to all workers over the age of 18 – as soon as possible, though they technically have until 1 May 2026. You can check whether your employer is part of the scheme on the Real Living Wage website.
The Living Wage Foundation, the campaign group that sets the rates, says the increase is "vital" for many low-paid workers who are struggling with the impact of rising prices, with its latest research showing that two in five (42% of) low-paid workers have used a food bank in the last year.
Martin Lewis: Why employers should sign up to the REAL living wage
MSE founder Martin Lewis has previously explained the importance of the real living wage and encouraged employers to sign up. This is what he said in a video recorded in 2023 – and his message remains just as relevant today:
Right now in the UK, far too many people – hundreds of thousands of people – are going to non-profit debt counselling and money agencies. And they're coming out of there, even after people have tried to help them and cut their expenditure to the minimum, with minimum expenditure higher than their income.
That is not a situation that we should have for working people in one of the world's richest economies. It has a massive impact on wellbeing, on people's mental health and on their physical health. That's why I support the real living wage. It's why I applaud the organisation and especially all those employers who've taken the plunge and signed up to be real living wage employers.
What I really need to do at this point is talk to employers... if you possibly can, why not make a pledge to the Living Wage Foundation that you're going to join and you're going to pay everybody in your organisation at least the real living wage, rather than just relying on the state's set absolute minimum? It can make a massive difference to some of the hardest working and poorest paid in the country. Have a think about it.
The minimum wage should also rise from April 2026
The national minimum wage (which is separate from the real living wage) is the lowest amount employees can legally be paid, and it normally goes up every year. We don't yet know what the new rates will be for April 2026, though it's likely we'll find out in the Budget on Wednesday 26 November.
In April 2025, the Government increased the national minimum wage by 6.7% to £12.21 per hour for workers aged 21 and over. This followed a recommendation by the Low Pay Commission, which had urged the Government to take cost of living into account when adjusting the rates.
For those aged between 18 and 21, rates went up by a record-breaking 16.3% – from £8.60 to £10 per hour – as part of the Government's long-term plan to eventually make the minimum wage the same for everyone regardless of age. For the full list of current rates, see our national minimum wage guide.
Workers can earn £1,000s more each year on the real living wage
Assuming you work 37.5 hours a week for the 52 weeks of the year, under the new real living wage outside of London you can earn £26,227.50 a year, and £28,860 in London.
That's up £1,657.50 a year from the current annual real living wage amount outside of London, and an increase of £1,852.50 in London.
In comparison, based on the same calculations, the current minimum wage for someone aged 21 and over is £23,809.50 a year. This means you'd earn £2,418 more a year under the new real living wage outside of London, and £5,050.50 more within London.
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