The Real Living Wage vs the National Living Wage

The Real Living Wage is a voluntary hourly rate, set by the Living Wage Foundation, of £14.10 across the UK and £15.45 in London for 2026/27. The National Living Wage is the legal minimum, set by the government, and is £12.71 an hour for workers aged 21 and over from 1 April 2026. Every employer must pay the legal rate. Only employers that choose to, usually by becoming accredited, pay the Real Living Wage.

The two rates side by side

	Real Living Wage	National Living Wage
Who sets it	Living Wage Foundation	UK government
Legal requirement	No, voluntary	Yes, for all workers 21 and over
Rate (outside London)	£14.10	£12.71
Rate in London	£15.45	£12.71
Age bands	One rate for 18 and over	Lower rates under 21
When it changes	Announced each autumn	Each April
Annual at 37.5 hours	£27,571 (UK), £30,210 (London)	£24,853

The current Real Living Wage rates were announced on 15 October 2026. Both went up by 65p from £13.45 and £14.80, which is 4.8 per cent for the UK rate and 4.4 per cent for London.

How the Real Living Wage is calculated

The legal minimum is set with reference to median earnings, with advice from the Low Pay Commission. The Real Living Wage starts from what people need to live on. For 2026 the Living Wage Foundation reviewed its method and now uses the Minimum Income Standard, which is built from what members of the public say households need for a minimum acceptable standard of living. London has a separate rate because housing, transport and childcare cost more there.

Accreditation and timing

Employers can become accredited Living Wage Employers. They commit to paying all directly employed staff aged 18 and over at least the Real Living Wage, and to paying it to regular third-party contractors such as cleaners and security staff working on their sites. When new rates are announced, accredited employers should bring them in as soon as possible and within six months.

The next announcement is expected in autumn 2027, though the exact date had not been confirmed.

Public sector pay and the Real Living Wage

Many councils, some NHS trusts and some universities and academy trusts are accredited. National public sector pay scales are not set to the Real Living Wage, which leaves a gap at the bottom of the scales.

On NHS Agenda for Change in England, band 2 pays £25,272, about £12.92 an hour on a 37.5-hour week, and band 3 starts at £25,760, about £13.17. The band 3 top point of £27,476 is about £14.05 an hour, just under the new Real Living Wage. The first point at or above £14.10 is band 4 entry, at £28,392.

On the NJC pay spine for councils and school support staff, SCP 3 at £25,614 is about £13.28 an hour on a 37-hour week. The spine reaches £14.10 an hour at about SCP 7 (£27,274). Accredited councils may pay a supplement to staff on lower points to make up the difference. The NJC pay spine shows every point.

These hourly figures are annual salary ÷ weekly hours ÷ 52.143, rounded, so an employer’s own calculation may differ by a penny or two.

London

The London rate of £15.45 an hour is what accredited employers pay staff working in Greater London. Public sector staff in London also have other London pay arrangements, such as the NHS High Cost Area Supplement, which takes inner London band 2 to about £15.89 an hour (£31,066 a year including the £5,794 minimum supplement). The London weighting guide sets out how each part of the public sector handles London pay.

Checking what you are owed

An accredited employer should say so in adverts or on its website, and the Living Wage Foundation lists accredited employers. Being paid below £12.71 an hour at 21 or over is a breach of the law, and the guide to the National Living Wage explains how to raise it. For take-home pay on either rate, use the take-home pay calculator.