Real Living Wage Increase: 500,000 Workers Set for Pay Rise Under New Rates

• New Real Living Wage rates announced, impacting 500,000 workers
• UK-wide wage rate rises to £12.60, London rate increases to £13.85
• Labour plans further wage reforms in upcoming Budget

Today, the Living Wage Foundation announced new rates for the Real Living Wage, granting 500,000 workers an increase in earnings. The Real Living Wage, which is a voluntary wage based on living costs, will rise to £12.60 per hour across the UK and £13.85 in London. This marks a significant 5% increase from last year’s figures, meaning annual gains of up to £1,365 for Londoners. Employers have until May 2025 to implement the new rates.

While the government mandates the National Living Wage, the Real Living Wage is higher and voluntary, covering workers over 18. As Labour gears up for its Budget, Deputy PM Angela Rayner hinted at further wage reforms, promising to address wage disparities and cost-of-living challenges. Major employers such as Ikea, Barclays, and Oxfam are among 15,000 businesses already signed up for the Real Living Wage.

Tom Church, Co-Founder of LatestDeals.co.uk, commented: “It’s great to see so many businesses committing to fair pay, especially in challenging economic times."