What is the difference between the real Living Wage and the Government's 'National Living Wage'
The real Living Wage which is independently calculated based on the cost of living and voluntarily paid by over 16,000 employers in the UK. On October 22nd 2025, the Living Wage Foundation announced the real Living Wage rates would increase to £13.45 an hour in the UK and £14.80 in London.
The Government's 'National Living Wage', or minimum wage rate is separate to the Living Wage rate calculated by the Living Wage Foundation. Unlike the Living Wage Foundation's real Living Wage rates, it is not independently calculated according to the cost of living, and is therefore lower than what people need to afford a decent standard of living.
- The government's 'National Living Wage' is the legal minimum wage for over 21s, as of 1st April 2025 it is £12.71 an hour
- Full time workers on the Living Wage Foundation's real Living Wage would earn over £1,400 a year more than a worker on the government's 'National Living Wage'
- Full time workers in London on the real Living Wage would earn over £4,000 a year more than a worker on the 'National Living Wage'
History
Inspired by the campaign for a real Living Wage, in April of 2016 the UK Government introduced a higher statutory minimum wage rate for all workers aged 25 and over which they called the ‘National Living Wage’. In 2021, the age threshold was lowered to include workers aged 23 and over.
Since April 2024, the National Living Wage has applied to workers aged 21 and over, as opposed to 23 and over as previously. However, this means that 18–20-year-olds, many of whom are living away from home and working full-time, are still at risk of being paid just £10.85 per hour. The real Living Wage, set by the Living Wage Foundation, applies to all workers 18 and over.
Find out more about the Government's National Living Wage rates.
Read about the latest increase to the real Living Wage rates.