Paid Less Than the Real Living Wage? Here's How to Check — and What to Do About It

There are two different "living wage" figures in the UK, and mixing them up can cost you money. The legally mandatory National Living Wage is £12.71 an hour for workers 21 and over. The Real Living Wage — a voluntary, higher rate calculated from the actual cost of living — is £13.45 an hour across the UK and £14.80 in London, according to the Living Wage Foundation. Employers who sign up as accredited Living Wage Employers commit to paying the higher figure; the rest of the market only has to meet the legal minimum.

Why the gap exists

The Real Living Wage rose 6.7% this cycle to £13.45, with the London rate up 6.9% to £14.80, new rates the Foundation announced on 22 October 2025 and gave employers until 1 May 2026 to implement, per Turning Point HR. Unlike the National Living Wage, which the government sets annually based on median earnings targets, the Real Living Wage is independently calculated each year based on what people actually need to earn to cover their living costs, as explained on the Living Wage Foundation's own site.

The practical difference for a full-time worker on a 37.5-hour week: someone paid the National Living Wage earns roughly £24,785 a year before tax, while someone on the Real Living Wage earns around £26,228 — over £1,400 more annually, and the gap widens further for London workers.

Checklist: find out which rate applies to you

1. Check your payslip hourly rate against both figures — £12.71 (legal minimum, 21+) and £13.45/£14.80 (Real Living Wage, UK/London).
2. Look up whether your employer is accredited. The Living Wage Foundation publishes a searchable directory of accredited Living Wage Employers — if your employer is listed, you should be receiving at least the Real Living Wage rate for that period.
3. Understand accreditation isn't legally required. Paying below the Real Living Wage is not illegal — only paying below the National Living Wage is. Your leverage here is reputational and contractual, not statutory, unless your contract explicitly references Living Wage accreditation.
4. If you're under 21 or an apprentice, check the age-banded National Minimum Wage rates on gov.uk — different legal minimums apply, and the Real Living Wage figure applies to all ages under Foundation accreditation.
5. If your employer is underpaying the legal minimum (not just the voluntary Real Living Wage), report it — see Acas guidance on national minimum wage entitlement and the new Fair Work Agency complaints route for unpaid wages.
6. Raise it directly first. If you believe your employer is Living Wage-accredited but you're not being paid accordingly, query it with HR or payroll before escalating — accreditation lapses or payroll errors are common causes.

The international comparison

Voluntary "living wage" campaigns separate from the statutory minimum exist elsewhere too — the US has city- and state-level living wage ordinances that often exceed the federal minimum wage of $7.25/hour, and Australia's Fair Work Commission sets a National Minimum Wage that is reviewed annually but has no separate voluntary "living wage" tier in the same way the UK does.

Key Numbers

• National Living Wage (legal minimum, 21+): £12.71/hour
• Real Living Wage (UK, voluntary): £13.45/hour
• Real Living Wage (London, voluntary): £14.80/hour
• Implementation deadline for new rates: 1 May 2026 (Turning Point HR)

Sources

• Living Wage Foundation — National Living Wage response
• Living Wage Foundation — What is the Real Living Wage?
• Turning Point HR — New rates confirmed
• Acas — National minimum wage entitlement
• gov.uk — National Minimum Wage rates

Educational content only — not financial advice.