Rise in UK minimum wage leaves millions short of real living wage

Millions of UK workers will still be left more than £1,000 a year short of a real living wage, despite the biggest cash boost in the minimum wage set by the government for more than a decade.

The “national living wage” (NLW) is increasing from Monday from £10.42 to £11.44 an hour, and is being expanded to cover younger workers with a cut in the age threshold from 23 to 21. The increase is worth £1,800 a year for a full-time adult worker.

However, workers on the legal pay floor will still be left £1,092 a year short of the voluntary “real living wage” set by the Living Wage Foundation charity, which is paid by thousands of employers to reflect household costs.

Almost half a million workers in the UK whose employers are signed up to real living wage are receiving an increase in pay to £12 an hour across the UK and £13.15 in London. The difference could pay for 18 weeks of food for a household, or 12 weeks of housing and energy costs.

Rise in UK minimum wage leaves millions short of real living wage

Lowest-paid will be £1,000 short of the figure paid by some employers to reflect actual household costs

Richard Partington Economics correspondent

Mon 1 Apr 2024 12.28 BST

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Millions of UK workers will still be left more than £1,000 a year short of a real living wage, despite the biggest cash boost in the minimum wage set by the government for more than a decade.

The “national living wage” (NLW) is increasing from Monday from £10.42 to £11.44 an hour, and is being expanded to cover younger workers with a cut in the age threshold from 23 to 21. The increase is worth £1,800 a year for a full-time adult worker.

However, workers on the legal pay floor will still be left £1,092 a year short of the voluntary “real living wage” set by the Living Wage Foundation charity, which is paid by thousands of employers to reflect household costs.

Almost half a million workers in the UK whose employers are signed up to real living wage are receiving an increase in pay to £12 an hour across the UK and £13.15 in London. The difference could pay for 18 weeks of food for a household, or 12 weeks of housing and energy costs.