The real Living Wage is a voluntary initiative that employers can choose to join, which seeks to improve the pay of those in typically low-paid sectors.

When setting its rates, it focuses on the needs of the employee, rather than the employer, and tries to reflect the actual cost of living.

Unlike the national minimum wage (NMW), there are separate rates for London and the rest of the UK.

There is no legal obligation to pay the real living wage. Employers who choose to do so can receive accreditation from the Living Wage Foundation.

There are currently over 15,000 accredited employers in the UK.

The new living wage rates were announced on 23 October 2024, and employers wishing to maintain or gain an accreditation have until 1 May 2025 to implement them. The rates apply to all workers aged 18 and over and are:

• £12.60per hour for the UK
• £13.85 per hour in London

But you don’t need to be accredited to give your staff the benefit of a living wage.