Real Living Wage Rates for 2026–27 Announced
The real Living Wage rates for 2026–27 were announced on 15 October 2026. The new hourly rates are £14.10 across the UK and £15.45 in London. These voluntary rates apply to employees aged 18 and over and are designed to reflect the actual cost of living rather than simply meeting a legal minimum.
Accredited Living Wage employers now have six months to implement the new rates. To remain a Living Wage employer they must put the increases in place by 1 May 2027. The Living Wage Foundation encourages organisations to adopt them as soon as possible so that staff feel the benefit without delay.
Rate changes and comparison with the National Living Wage
| Rate | Previous (2025–26) | New (2026–27) | Increase | Difference vs National Living Wage (£12.71) |
| UK real Living Wage | £13.45 | £14.10 | +65p | +£1.39 |
| London real Living Wage | £14.80 | £15.45 | +65p | +£2.74 |
Both real Living Wage rates rose by 65p an hour. The National Living Wage (the statutory minimum for workers aged 21 and over, in force since April 2026) is shown for comparison. Younger National Minimum Wage rates are lower still: £10.85 for 18–20 year-olds and £8.00 for those aged 16–17 and apprentices.
The real Living Wage is calculated independently each year by the Resolution Foundation and overseen by the Living Wage Commission. The calculation draws on living costs such as rent, food, household bills and other essential expenses, with a higher London rate to reflect the capital’s elevated cost of living. It is the only UK wage rate rooted solely in what people need to cover everyday costs and maintain a decent standard of living.
This voluntary rate should not be confused with the government’s mandatory National Living Wage, which is set by ministers on the advice of the Low Pay Commission and takes account of economic conditions, median earnings and the cost of living. Unlike the real Living Wage, it has no separate London rate.
Nearly 17,000 businesses and organisations across the UK are accredited Living Wage employers and together they employ more than 490,000 people who receive the higher rate. The campaign for a real Living Wage began in 2001 in East London. Over the past 25 years it has secured nearly £5 billion in additional pay for low-paid workers, including almost £700 million in the last year alone.
Analysis by the Living Wage Foundation shows that a full-time worker on the new UK real Living Wage would earn over £2,700 a year more than someone on the National Living Wage. In London the gap is even larger: full-time workers on the new London Living Wage will earn over £5,300 a year more than the statutory minimum. These differences can make a tangible difference to household budgets, helping cover food, transport or unexpected costs.
This year’s announcement also coincides with the 25th anniversary of the Living Wage campaign. While the movement has raised standards for hundreds of thousands of workers, the Foundation notes that millions of people in the UK remain in low-paid or insecure work. Employers that choose to pay the real Living Wage often report benefits such as improved staff retention, higher morale and a stronger reputation as responsible businesses.
The real Living Wage remains entirely voluntary. Employers that wish to go beyond the legal minimum can become accredited through the Living Wage Foundation, committing to pay the independently calculated rate to all staff and contracted workers.
For more information, including the full list of accredited employers and details of how the rates are calculated, visit the Living Wage Foundation at https://www.livingwage.org.uk/what-real-living-wage.
This year’s increase of 65p an hour will deliver a meaningful boost for hundreds of thousands of workers and their families at a time when living costs continue to press on household finances.