Real living wage to increase to at least £14.10 an hour – here's what you need to know
Almost half a million workers are set to see a boost in their hourly pay due 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 close to 17,000 employers who are signed up, your hourly wage will rise by 65p to £14.10 an hour outside of London or to £15.45 an hour in London.
The new rates – which apply to all workers over the age of 18 – will be applicable from today (Thursday 15 October) and employers are encouraged to implement them as soon as possible, though they technically have until 1 May 2027. You can check whether your employer is part of the scheme on the Real Living Wage website. This year marks its 25th anniversary.
The Living Wage Foundation, the campaign group that sets the rates, says that while its work has made a "monumental impact" on wages for low-paid workers, many are still struggling.
Research by the Foundation has revealed that 61% of low-paid workers have cut back on food or heating, fallen behind on bills or housing payments, or taken out a payday loan to cover essentials over the past year, while 37% have used a foodbank.
Martin Lewis: Why employers should sign up to the REAL living wage
MoneySavingExpert.com 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 2027
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 by how much it might rise in April 2027, though it's likely we'll find out in the Budget on Wednesday 28 October. We've asked HMRC to confirm and we will update this story when we know more.
In April 2026, the Government increased the minimum wage for those aged 21 and over to £12.71 an hour – up 50p from £12.21. This followed a recommendation by the Low Pay Commission, which urged the Government to take cost of living into account when adjusting the rates, as it had done the previous year.
For those aged between 18 and 21, minimum wage rates increased to £10.85 an hour – up 85p from £10. 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 £27,495 a year and £30,127.50 in London.
That's up £1,267.50 a year from the previous annual real living wage, and an increase of £1,267.50 in London. When compared to the national minimum wage, it's an increase of £2,710.50 outside London and £5,343 in London.
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