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Real Living Wage Skyrockets: Half a Million UK Workers to Get Immediate Pay Boost

Vicky Parry 23rd Oct 2025 No Comments

Reading Time: 2 minutes


Good news for low-paid workers, giving hundreds of thousands of workers more cash in their pockets each week. With bills rising, this extra money couldn’t come at a better time.

New Pay Rates

Location Old Rate New Rate Extra
UK (outside London) £12.60/hr £13.45/hr +£0.85/hr
London £13.85/hr £14.80/hr +£0.95/hr
Quick tip: Use our Living Wage Calculator to see exactly what this means for you.

Who Gets the Boost?

  • All workers aged 18+
  • Paid by accredited employers like IKEA, Uniqlo, Aviva
  • Around 500,000 workers will see their pay go up immediately
Clickable tip: Check if your employer is Real Living Wage accredited so you can claim your rise.

Extra Money in Your Pocket

Full-time (37.5 hours/week)

Outside London

  • Old weekly pay: £472.50
  • New weekly pay: £503.44
  • Extra per week: £30.94
  • Extra per year: £1,608

London

  • Old weekly pay: £519.38
  • New weekly pay: £555
  • Extra per week: £35.62
  • Extra per year: £1,851
This could cover a few extra grocery trips, a family night out, or help with rising energy bills.

Why It Matters

Inflation is hovering around 3.8%, which means every extra pound counts. This pay rise actually puts more money in your pocket, instead of just keeping up with rising prices.

  • Cut down on food bank visits
  • Keep on top of bills
  • Feel less stressed about money
Tip: Combine this pay boost with our budgeting tips to stretch your income further.

Families Will Feel the Difference

For households with kids, every extra £30–£36 per week adds up. It could mean:

  • More meals at the table
  • Keeping kids active with clubs or hobbies
  • Covering unexpected bills without panic

When Employers Must Act

Employers have until 1 May 2026 to roll out the new rates, but the sooner, the better. Workers feel the benefit immediately, which is vital as energy and living costs keep rising.

Quick tip: Ask HR when your new pay will take effect so you can plan ahead.

Bottom Line

This increase isn’t just numbers on a pay slip—it’s real cash for families who need it most. It helps cover costs, reduces stress, and gives workers more breathing room each week.

Next steps: Check out our weekly money-saving tips to make the most of your pay rise.



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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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