Upcoming Rise in Real Living Wage to £13.45 Per Hour

The upcoming rise in the 'real living wage' to a minimum of £13.45 per hour marks an important change for almost half a million workers benefiting from this voluntary pay scheme, which is in line with the cost of living. Employees at any of the more than 16,000 participating employers will see their hourly wage increase to £13.45 (an 85p increase), or to £14.80 (a 95p increase) if they are based in London.

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Employers are encouraged to adopt these new rates promptly, although they have until May 1, 2026, to fully comply. Employer participation can be verified on the Real Living Wage website. The Living Wage Foundation stresses that this change is vital for many low-paid workers who are struggling economically due to rising prices. Recent research shows that two out of five low-paid workers have used food banks in the past year.

For full-time employees aged 21 and over earning the new real living wage, their annual income will increase by £2,418 compared to those earning the current national minimum wage; in London, this increase is £5,050.

Additionally, it is expected that changes will also be made to the national minimum wage starting in April 2026. This statutory minimum is the lowest legal pay rate and is typically revised annually. Specific figures have not been disclosed yet and are likely to be announced during the Budget on November 26th.

In April 2025, there was a significant 6.7% increase in national minimum wages for those aged 21 and over, raising it to £12.21 per hour, based on recommendations from The Low Pay Commission, which advised considering cost-of-living factors when setting rate adjustments.

Furthermore, individuals aged between eighteen and twenty-one experienced a remarkable increase of 16.3%, from £8.60 to £10 per hour, as part of government efforts to eventually standardize minimum wages across all age groups without distinction.

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