What is the Real Living Wage and what is it worth?

Almost half a million workers will benefit as the Real Living Wage – an hourly rate amount voluntarily paid by some UK businesses – is going up by 5%.

Employees who receive the London Living Wage will get a 5.3% boost.

Millions of other low-paid workers across the UK saw their pay increase in April when the National Minimum Wage and National Living Wage went up.

Since 1 April, employees aged 21 and over are entitled to the National Living Wage. Previously, you had to be 23 to qualify.

The rate increased to £11.44 an hour, up from £10.42.

The changes, which apply across the UK, mean:

Younger employees – aged between 16 and 20, external – receive the National Minimum Wage.

The rates for this also increased on 1 April:

The separate apprentice rate,, external which applies to eligible people under 19 – or those over 19 in the first year of an apprenticeship – will be £6.40 an hour, up from £5.28.

The National Living Wage and National Minimum Wage are both set by the Department for Business and Trade every year on the advice of independent group, the Low Pay Commission, external.

National Living Wage and National Minimum Wage rates go up every April.

Those who don’t qualify include:

People with disabilities or in long-term unemployment who take part in government work programmes are paid fixed amounts at different stages of the scheme.

These are less than the equivalent National Minimum or Living rate.

Yes, it is a criminal offence if employers fail to pay the correct National Minimum and Living Wages to their workers.

The rates apply to staff even if they are not paid by the hour.

If you think you are being paid incorrectly, you can complain via the HMRC website, external.

You can also get advice from workplace experts Acas, external.

Any employer not paying the correct amount can be fined by HMRC.

In June 2023, the government said that more than 200 firms had been fined a total of nearly £7m and told to reimburse 63,000 workers for failures over several years.

The companies included Marks and Spencer, Argos and Lloyds Pharmacy.

WH Smith was the worst offender, having failed to pay more than £1m to more than 17,600 workers.

The Real Living Wage, external is an unofficial hourly rate of pay which is overseen by the Living Wage Foundation charity. It is based on the amount of money the charity believes people need to earn.

It is aimed at UK workers aged 18 and over, but is not a legal requirement, and businesses choose whether to pay it.

The charity says more than 475,000 employees working for 15,000 firms, external currently receive the Real Living Wage.

The rate for workers in London – the London Living Wage – is going up by 70p to £13.85 an hour.

In the rest of the UK, a 60p increase will take the rate to £12.60.

Employers must implement the new rates by 1 May 2025.

Announcing the new rates, the charity said the Real Living Wage was now worth over £2,262 more per year in the UK than the legal minimum pay – and over £4,700 more in London

It says the scheme has delivered nearly £3.5bn in extra wages to low-paid workers since 2011.

The National Minimum Wage came into force under the Labour government in 1999.

It started at £3.60 an hour for those 22 and older, and £3 for 18-21-year-olds.

The Conservative government introduced the National Living Wage for workers aged over 25 in 2016.

It was initially set at £7.20 an hour – 50p more than the National Minimum Wage. The qualifying age fell to 23 in 2021.