In a major victory for low-paid workers across the United Kingdom, the Real Living Wage is set to increase by almost 7% this autumn, providing a significant financial boost to nearly half a million employees.
Substantial Pay Increases Announced
The Living Wage Foundation has revealed that from October 2025, the voluntary Real Living Wage will rise to £13.15 per hour in London and £12.05 across the rest of the UK. This represents increases of 85p and 75p respectively from current rates, substantially outpacing both the government's national living wage and current inflation levels.
Closing the Pay Gap for Struggling Families
This significant uplift means a full-time worker on the Real Living Wage will see their annual earnings increase by approximately £1,500 outside London and £1,700 in the capital. For families grappling with the ongoing cost of living crisis, this injection of additional income could prove transformative.
Katherine Chapman, Director of the Living Wage Foundation, emphasised the importance of this increase: "During these challenging economic times, this rise provides a vital lifeline for thousands of workers struggling to make ends meet. It represents a genuine commitment to valuing the contributions of the lowest paid in our society."
Voluntary Scheme Outpaces Government Minimum
The Real Living Wage differs fundamentally from the government's statutory national living wage, which currently stands at £11.44 for workers aged 21 and over. Unlike the government rate, the Real Living Wage is:
- Voluntarily adopted by employers
- Calculated based on actual living costs
- Applied to all workers aged 18 and over
- Significantly higher than statutory minimums
More than 14,000 businesses across the UK have committed to paying the Real Living Wage, including major employers like Aviva, IKEA, and Nationwide Building Society.
Economic Impact and Business Response
While some business groups have expressed concerns about the timing of the increase during a period of economic uncertainty, supporters argue that better pay leads to improved productivity, reduced staff turnover, and stronger employee morale.
The rise comes as new data shows persistent financial pressure on low-income households, with food inflation and energy costs continuing to stretch family budgets to their limits.
For workers receiving this welcome pay boost, the difference could mean being able to afford essentials that were previously out of reach, providing some much-needed financial security in uncertain times.
