Nearly half a million UK workers are set to receive a significant pay rise next April, as the Real Living Wage is set to increase by 6.7% to £13.45 an hour. In London, the rate will climb by 6.9%, reaching £14.80.
Unlike the statutory National Living Wage, the Real Living Wage is a voluntary rate adopted by over 16,000 employers across the country.
UK Real Living Wage Rise 2025 – Pay Boost for 500,000 Workers
It’s the only UK wage calculated annually based on the actual cost of living, taking into account essentials like food, rent, and energy bills.
More than half of FTSE 100 companies have signed up, including big names such as Aviva, Ikea, Linklaters, Lush, KPMG, and Uniqlo.
From next April, full-time workers earning the Real Living Wage will pocket £2,418 more annually than those on the government’s minimum wage and in London, the difference could hit a staggering £5,050. This move comes amid continued economic uncertainty and rising living costs.
More Companies Join the Movement
Despite the financial pressures across the economy, the number of organisations committing to the Real Living Wage is steadily climbing.
According to the Living Wage Foundation, 2,500 employers have joined the initiative in the last 12 months alone.
These companies also ensure that third-party staff, including cleaners and security guards, receive the same wage standards. Currently, 1 in 7 workers in the UK is employed by a Real Living Wage-accredited employer.
Impact on Working Households
The wage boost couldn’t come at a more crucial time. Research from the Living Wage Foundation revealed that millions of low-paid workers are still feeling the pinch. Over the past year:
- 42% of low-paid workers have used a food bank
- That figure jumps to 56% among households with dependent children
Speaking on the rise, Katherine Chapman, Executive Director of the Living Wage Foundation, said: “We all need a wage that covers life’s essentials, and the real living wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs.
The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.”
Echoing this sentiment, Alessandro Dudech, Chief Operating Officer at Uniqlo UK, added: “Uniqlo is delighted to be accredited by the Living Wage Foundation in the UK. We believe that ensuring our employees are fairly compensated for their hard work is essential for fostering a motivated and productive workforce.”
Government Wage Increase Also on the Horizon
Meanwhile, the government’s statutory minimum wage, currently at £12.21, is expected to rise to £12.71 in April, subject to the Low Pay Commission’s final recommendations to Chancellor Rachel Reeves.
However, it’s worth noting that the statutory rate varies by age, with younger workers receiving less. Labour’s manifesto pledges to end this age-based disparity, gradually equalising pay brackets across all age groups.
As inflation continues to affect household budgets, the Real Living Wage serves as a lifeline for many struggling to stay afloat. While it remains optional, growing corporate support hints at a wider shift in employer responsibility.
The 2025 pay rise isn’t just a win for workers, it’s a strong signal that fair pay is climbing up the priority list in Britain’s labour market.
