Hundreds of thousands of workers are in line for a pay rise worth more than £1,250 a year as the new real Living Wage rates have been announced.
The rates will rise to £14.10 an hour across the UK and £15.45 in London, giving almost half a million workers employed by accredited Living Wage employers a boost to their earnings - at 40 hours a week that's £ 27,495 a year across the UK or £32,136 in London.
The UK rate is increasing by 65p an hour, a rise of 4.8%, while the London rate is also going up by 65p, or 4.4%.
Nearly 17,000 employers have signed up to pay the real Living Wage, including IKEA, Uniqlo and Everton FC. One in seven UK employees now works for an accredited Living Wage employer.
The announcement also marks the 25th anniversary of the Living Wage campaign, which says it has secured nearly £5billion in extra pay for low-paid workers since it began.
How much more could workers earn?
The Living Wage Foundation says full-time workers receiving the new rates will be more than £1,250 a year better off following the increase.
Its analysis suggests someone working full-time on the new real Living Wage will earn more than £2,700 a year above someone receiving the current Government minimum.
In London, a full-time worker on the London Living Wage will earn more than £5,300 a year above the Government minimum, according to the foundation.
It said the additional money could cover eight months of food for a household outside London, or five months of housing and energy costs.
For workers in the capital, the difference could cover 16 months of food costs or six months of housing and energy bills.
The foundation also said almost £700million went back into workers' pockets in the past year alone as a result of the campaign.
‘Millions of workers’ still struggling
Emily Sawh, Co-Director of the Living Wage Foundation, said: “Today’s increase to the real Living Wage will make a massive difference to hundreds of thousands of workers and their families up and down the country. They will be over £1,250 better off this year thanks to the rise, helping them achieve the decent standard of living they need to thrive."
She added: “Despite the Living Wage campaign’s monumental impact on wages in the UK, there are still millions of workers trapped in in-work poverty and struggling every day to make ends meet.
"They're forced to skip meals, fall behind on bills and visit foodbanks. That's why we urge employers to do the right thing by signing up to pay the real Living Wage and providing workers with the decent standard of living they need to thrive.”
Despite the campaign's growth, the foundation estimates that 4.4 million workers are still paid below the real Living Wage.
Research by the organisation found that 61% of low-paid workers had 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. It also found that 37% had used a foodbank.
More than 2,000 employers signed up to pay the real Living Wage over the past year, including Uniqlo, the Department for Business and Trade and Coventry Building Society.
Half of FTSE 100 companies are accredited Living Wage employers, the foundation said, alongside thousands of smaller businesses.
💼 With the Autumn #Budget2026 only a couple of weeks away, FSB's @craigie_b has been setting out the key issues for small businesses to the Chancellor, and the actions he could take support them: ✅ Increasing Small Business Rate Relief from the current £12,000 threshold to £25,000 would remove at least 250,000 more small businesses from paying rates - giving them vital room to grow. ✅ With rising employment costs putting off many small firms from hiring, uprating the Employment Allowance, then indexing it in line with the National Living Wage would be a lifeline for small businesses looking to take on more, particularly younger, members of staff.
— Federation of Small Businesses (FSB) (@fsb_policy) October 13, 2026
Workers say the increase makes a difference
Alessandro Dudech, UNIQLO UK COO, said: “UNIQLO's employees are integral to our business, which is why we are committed to providing competitive pay and rewarding career opportunities across our UK operations. The latest increase will make a meaningful difference to our employees, helping them manage everyday costs and supporting their wellbeing.”
Jammy Rachatamahachoti, a UNIQLO employee at Manchester's Trafford Centre, said: “UNIQLO’s dedication to investing in its employees has given me more confidence and security in managing everyday costs. Knowing that the company is working towards providing competitive salaries that reflects the realities of daily life makes me feel supported and appreciated. It's reassuring to work for a company that values its people and invests in them in this way.”
The foundation also highlighted the experience of workers in cleaning, hospitality, security and other sectors, where low pay can make it difficult to cover everyday essentials.
A barista at SEND Coffee in London said: “Life was tough on £13 an hour as a managerial salary in a previous job!! Bills were tight with travel and buying food. I had no expendable income for general life.
“My rent has increased recently but aside from that, the food shop has increased, gas and electricity has increased and petrol has skyrocketed.”
Mohammed Ibrahim, a housekeeping assistant at PGL Activity Centre Liddington, said: “Earning a Real Living Wage has made a real difference to me. Before I was working, there were things I simply couldn’t afford and I didn’t feel like I had much independence.
"Having a proper income means I can buy things I wasn’t able to have before, travel, and make more choices for myself. Being able to work and live on centre has given me a level of independence I hadn’t experienced before and has really helped build my confidence.
"It’s not just about earning money – it’s about feeling like I can move forward with my life, make plans for the future and know that I’m capable of supporting myself.”
What is the real Living Wage?
The real Living Wage is a voluntary rate set by the Living Wage Foundation, based on its assessment of what people need to earn to meet the cost of living.
It is separate from the Government's legal minimum wage rates. Employers can choose to become accredited and commit to paying the real Living Wage to their staff.
The foundation says paying the rate can also benefit employers by helping them recruit and retain staff.
JS Pelland, Executive Director of Eland Cables, said the company had seen its staff retention rate rise from below 70% to around 90% since introducing the Real Living Wage: “If someone gives you their time, their skills, and their commitment, I think an employer has a responsibility to pay them fairly for it. That principle matters to us. What we’ve observed over the years is that there doesn’t have to be a choice between doing right by your people and doing right by the business.”
Ben Pankovics, a warehouse shift supervisor at Eland Cables who joined as a cleaner on the Real Living Wage in 2017, said the pay had helped his family afford essentials and occasional treats.
He said: “When I started, I had two young children, and the Living Wage made a real difference. Essentials like milk powder and nappies were covered, and things like a trip out to the farm became possible.
“It made me feel my hard work was worth something.”
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