The real Living Wage ensures that workers are paid a fair wage. Calculated by the Living Wage Foundation and championed by the Mayor of London, it is a vital lifeline for many of London’s workers.
- The real Living Wage for London currently stands at £13.15 an hour.
- There are now over 140,000 employees working for 3,600 London Living Wage employers.
- Over 50,000 Londoners receive a pay rise each year.
- Since introduction, an astounding £1.4 billion in extra wages has already found its way into the pockets of low-paid workers in the capital.
- London Living Wage has risen by 40 per cent since 2016, benefiting hundreds of thousands of Londoners.
What’s the difference between the real Living Wage versus the National Living Wage?
The London Living Wage, or the ‘real’ Living Wage differs from the UK Government's minimum wage.
The 'real' Living Wage
The real Living Wage is independently calculated based on rising living costs and applies to everyone over 18. This real Living Wage is paid at a higher rate, to reflect the higher costs of living in the capital.
Employers voluntarily agree to pay it, and to increase their pay rates in line with a new calculation each year.
The National Living Wage
The UK Government’s 'National Living Wage' currently stands at £10.42 and is paid to those over 23. Employers are legally obliged to pay at least this rate. Neither are weighted towards people living and working in London.
A full-time worker earning the London Living Wage would earn £5,323.50 more than someone on the current National Living Wage, significantly improving the quality of life for so many Londoners. The London Living Wage factors in the cost of a weekly shop, housing, childcare, and often-overlooked costs like emergency repairs or birthday presents.
In Autumn 2023, the Mayor of London, alongside the Living Wage Foundation (LWF) announced that the London Living Wage would increase by 10 per cent to £13.15 per hour. This is the biggest jump ever, bringing vital support to Londoners to deal with the impact of the cost of living.
Learn more about how the real Living Wage is calculated on the Living Wage Foundation website.
London Living Wage: a win-win for employees and business
The Living Wage movement in London has continued to grow with the number of accredited London Living Wage Employers increasing six-fold since 2016.
Good for employees
The London Living Wage has never been more crucial for workers, offering security and stability to the cost-of-living crisis at a time when everyday living costs continue to rise.
Good for business
For businesses, paying the London Living Wage makes good commercial sense.
Employers report improved staff retention, and recruitment, reducing the cost of doing business. As a responsible business approach, it also helps boost business’ reputation, attracting investors and employees. For some, it has helped win contracts or funding.
Half of FTSE 100 companies are accredited, along with well-known names such as Aviva, Burberry, London Stadium, Brentford FC, the Royal Albert Hall, and IKEA.
Small businesses are also making their mark - Dusty Knuckle Bakery, Greenwich Pantry and Rosslyn Coffee are just some of London’s SMEs joining this great cause.
Making London a Living Wage City
The growing number of businesses committing to the London Living Wage helps build a fair and prosperous city. The Mayor of London co-chairs the Making London a Living Wage City Programme, working together with the Living Wage Foundation, community groups, workers and employers to lift pay in some of London’s most challenging sectors.
We invite other businesses - small or large – to join the movement, committing to secure, stable work for their employees and join the 14,000 Living Wage employers across the UK.
Beyond the Living Wage: tackling insecure work
The Living Wage Foundation's Living Hours scheme gives employees more predictable and secure working hours. Becoming a Living Hours employer means that workers are given four weeks’ notice of shifts, at least 16 hours of work a week, and a contract that accurately reflects hours worked.
We’re proud to say that Greater London Authority recently became a Living Hours employer.
