Real Living Wage: 1000s of hard-hit UK workers to receive pay increase as national 2024 and 2025 rates rise

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Real Living Wage workers will earn £2,262 more a year than those on minimum wage 💸
  • Nearly 500,000 workers will receive a pay rise under the Real Living Wage
  • The rate will increase to £12.60 per hour across the UK and £13.85 in London
  • Workers on the Real Living Wage will earn £2,262 more annually than those on minimum wage
  • The Real Living Wage is a voluntary rate based on the cost of living
  • Over 15,000 employers have signed up to pay the Real Living Wage

Nearly half a million workers are set to receive a pay rise following the announcement of new Real Living Wage rates.

According to the Living Wage Foundation, a full-time worker on the new Real Living Wage will earn £2,262 more annually than someone on the current government minimum wage.

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Katherine Chapman, director of the Living Wage Foundation, said: “Low-paid workers have been hardest hit by the cost-of-living crisis and are still struggling to stay afloat amidst persistently high prices.

“The Real Living Wage remains the only UK wage rate calculated based on actual living costs, and the new rates announced today will make a massive difference to almost half a million workers who will see their pay increase.

But what does it mean for you? How much is the rate going up, and how much can you expect to earn? Here is everything you need to know.

(Photo: Pexels)(Photo: Pexels)
(Photo: Pexels) | Pexels

How much is the Real Living Wage going up?

The Real Living Wage hourly rate will rise by 60p to £12.60 across the UK and by 70p to £13.85 in London for employees at over 15,000 businesses.

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These rates exceed the statutory minimum wage, which currently stands at £11.44 per hour for workers aged 21 and over, and £8.60 for those aged 18 to 20.

The Real Living Wage is not enforced by law but is voluntarily adopted by employers who choose to pay their workers more in recognition of the true cost of living.

Since the Real Living Wage is calculated based on the actual cost of living, workers will in theory be better equipped to afford essentials like food, housing and transport.

In the past three years record numbers of employers have signed up to pay the Real Living Wage, including to third-party contractors like cleaners and security guards, with one in nine employees now working for an accredited living wage employer.

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Employers who are signed up have until the deadline of 1 May to pay the increased rates but are encouraged to pay it as soon as possible.

Chapman added: “It’s a challenging time for businesses... which is why it is so encouraging to see the living wage movement continue to grow at pace. This year we reached the major milestone of 15,000 accredited employers, with half of them signing up since 2021.”

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