The London Living Wage

The London Living Wage is £15.45 an hour for 2026 to 2027, up 65p (4.4 per cent) from £14.80. It is voluntary, set by the Living Wage Foundation, and sits £2.74 above the legal National Living Wage of £12.71. At 37.5 hours a week it works out at about £30,127 a year.

Who sets it and what it covers

The Living Wage Foundation announced the 2026 to 2027 rates on 15 October 2026. The London rate is calculated by the Resolution Foundation and overseen by the Living Wage Commission, using the cost of living in the capital. It covers workplaces in all boroughs of Greater London. The rest of the UK has a separate rate of £14.10.

Accredited employers have to bring in the new rate as soon as possible and no later than 1 May 2027. To be accredited, an employer pays all directly employed staff the Living Wage and has a plan to extend it to regular subcontracted staff, such as cleaners or security on its sites. The rate is for workers aged 18 and over, with no lower rate for young people.

Year	London Living Wage	National minimum or Living Wage
2023 to 2024	£13.15	£10.42
2024 to 2025	£13.85	£11.44
2025 to 2026	£14.80	£12.21
2026 to 2027	£15.45	£12.71

The legal minimum is the same in London as everywhere else. The Foundation says a full-time worker on the London Living Wage earns over £5,300 a year more than one on the government rate.

The London Living Wage and public sector pay

Most public sector pay in London is set by national scales plus a London payment, not by the Living Wage Foundation. NHS Agenda for Change uses the High Cost Area Supplement. For the lowest bands, the 2026/27 NHS Employers tables show:

Band 2 in 2026/27	Annual	Hourly
England basic	£25,272	£12.92
Fringe zone	£26,618	£13.61
Outer London	£30,142	£15.42
Inner London	£31,066	£15.89

Inner London band 2 is above the new London Living Wage. Outer London band 2 is 3p an hour under £15.45. That matters because the Living Wage covers all boroughs, including those in the outer zone, and the NHS Employers tables are for pay from April 2026, before the new rate takes effect. Band 3 outer London starts at £15.66 an hour, which is above it. Whether any trust adds a top-up for staff below the rate is a matter for the employer, which can tell you. The NHS London weighting guide explains the percentages and limits.

Other parts of the public sector handle London pay in their own way, and the London weighting across the public sector guide compares them.

Finding a London Living Wage employer

The Foundation keeps a list of accredited employers that can be filtered by region and by industry. The industry filters include local authority, NHS trust, schools and health. An accredited employer should say so in adverts or on its website. Accredited employers have to plan to extend the rate to regular contractors, so if you work for a contractor in a public building, ask who your employer is and whether it is accredited.

What you can and cannot insist on

The Living Wage is voluntary, so you cannot demand it unless your contract says so or your employer is accredited. What you can insist on is the legal minimum, and you can report underpayment. The Foundation points workers to the HMRC Pay and Work Rights Helpline, which is confidential. The real Living Wage vs the National Living Wage guide covers the national rate, and the National Living Wage guide lists the legal rates. To see what £15.45 an hour leaves after tax, use the take-home pay calculator.