London's Real Living Wage rises to £15.45 an hour in pay boost for half a million workers

Why it matters

The Living Wage Foundation announced Thursday that the UK's voluntary Real Living Wage will rise by 65p: to £14.10 an hour nationwide and £15.45 an hour in London. The new rates apply from today, October 15, and accredited employers have until May 1, 2027 to implement them. Nearly 17,000 UK employers are signed up to the voluntary scheme, and almost half a million workers will receive a pay rise. This year marks the 25th anniversary of the campaign, which began with low-paid workers in East London organising for decent pay.

The Foundation says full-time workers on the new rate will be over £1,250 better off this year, and that a full-time worker earning the Real Living Wage will take home over £2,700 a year more than a worker on the government's statutory minimum of £12.71 for over-21s. Foundation research also found that 61% of low-paid workers have cut back on food or heating, fallen behind on bills or taken out a payday loan to cover essentials over the past year, while 37% have used a foodbank.