180,000 workers receive pay rise through Living Wage increases

07 November 2018

Is your employer a Living Wage employer? As part of Living Wage Week, the increase in rates means around 180,000 workers will receive a pay rise.

The Living Wage Foundation recognises and celebrates the leadership shown by Living Wage Employers across the UK.

On 5 November, the start of Living Wage Week, the Living Wage Foundation announced the new UK Living Wage hourly rate of £9 per hour, an increase of 25p per hour.

The London Mayor announced the new London Living Wage of £10.55 per hour, an increase of 35p per hour.

The UK rate is £1.17 per hour more than the government minimum wage (for over 25s) and the London Living Wage is £2.72 higher.

The real living wage is the only rate that is independently calculated every year to meet the real cost of living. It is voluntary, unlike the national minimum and living wage rates which are statutory.

Current UK wage rates



Government minimum for under 25s


Government minimum for over 25s


The only wage rate based on what people need to live

What is it?



£9.00 across the UK and

£10.55 in London


Is it the law?






What age group is covered?


21 and older

25 and older

18 and older

How is it set?

Negotiated settlement based on recommendations from businesses and trade unions

A % of medium earnings, currently at 55%, it aims to reach 60% of median earnings by 2020

Calculations made according to the cost of living, based on a basket of household goods and services

Is there a London weighting?

No London weighting

No London weighting

Yes – separate higher rate for London

As announced at Budget 2018, the National Minimum Wage will increase in April 2019 to £8.21 and the National Living Wage will increase to £7.70.


Over 4,700 Living Wage employers across the UK (including the CIPP)

New research finds that £809,000,000 in extra wages has gone to low-paid workers because of the Living Wage movement, with almost £200m extra received in the past year alone.

Living Wage Week 2018 runs from 5 November and the movement's annual celebration aims to raise awareness that earning the real Living Wage can make to individuals. Events take place all over the country to celebrate the impact and success of the living wage and to encourage more people to join the fight against low pay.

Find out how to become an accredited Living Wage employer and enjoy the business benefits that over 4,700 employers are seeing:

·         93% of Living Wage employers benefited from accreditation

·         86% reported that it had enhanced their general reputation

·         80% saw an increase in the quality of work