Real living wage increases to £9.50 in UK and £10.85 in London

The real living wage rates for 2020/21 have been announced as £9.50 in the UK, rising by 20p, and £10.85 in London, an increase of 10p.

The real living wage is separate from the statutory National Minimum Wage and National Living Wage, and is set by the Living Wage Foundation, not the government. Employers pay it voluntarily.

Of almost 7,000 real living wage employers throughout the country, 217 are in the hospitality sector and include brands such as Brewdog, caterer Houston & Hawkes, Mercato Metropolitano and vegan brand Temple of Seitan.

The rate is 78p per hour more than the government minimum wage (for over 25s) and the London Living Wage is £2.13 per hour higher. A full-time worker paid the new £9.50 real living wage will receive over £1,500 in additional wages annually compared to the current government minimum. For a full-time worker in London this figure rises to over £4,000.

Laura Gardiner, Living Wage Foundation director, said: “It’s an incredibly challenging time for us all, but today’s new living wage rates will give a boost to hundreds of thousands of UK workers, including thousands of key and essential workers like cleaners, care workers, and delivery drivers who have kept our economy going.

“Since the start of the pandemic employers have continued to sign up to a real living wage. During Living Wage Week it’s right that we celebrate those employers that have done right by workers and families, providing them with much needed security and stability even when times are hard. These are the employers that will allow us to recover and rebuild from this crisis.”

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