Real Living Wage Rates Set to Rise for 2025–26

The Living Wage Foundation has announced new real Living Wage rates for 2025–26, reflecting ongoing increases in the cost of living across the UK.

From the latest review:

• UK rate (outside London): rising from £12.60 to £13.45 per hour

• London rate: rising from £13.85 to £14.80 per hour

This represents an increase of around 7% and will benefit workers employed by more than 16,000 accredited Living Wage employers across the UK.

What is the real Living Wage?

The real Living Wage is a voluntary hourly rate calculated independently by the Living Wage Foundation. It’s based on the real cost of everyday essentials such as rent, food, transport, and bills, rather than the statutory minimum set by government.

How it differs from the statutory minimum

The National Minimum Wage (NMW) the legal minimum employers must pay, currently stands at £12.21 per hour for workers aged 21 and over (from April 2025).

While the final rate for April 2026 hasn’t been confirmed, the Low Pay Commission (LPC) has projected that the NMW could rise to around £12.71 per hour, with a possible range between £12.55 and £12.86.  This estimate keeps the wage in line with the government’s target of maintaining the NMW at two-thirds of median earnings. The official figure will be announced later in 2025, following economic review and consultation.

When the new real Living Wage rates take effect

Accredited Living Wage employers have until May 2026 to implement the updated voluntary rates.

At Cubed Talent, we stay informed about labour market trends and workforce developments that affect our clients and candidates. Sharing key updates—like the latest Living Wage review and National Minimum Wage projections—helps everyone stay aware of the changes shaping the world of work.