Rising minimum wage – but is it enough?

From 1 April 2026, the UK government increased the National Living Wage to £12.71 per hour for workers aged 21 and over. While this represents a welcome uplift in statutory pay, it may still short of the income many workers need to meet everyday living costs.

An alternative benchmark, known as the “real Living Wage,” is independently calculated to reflect the true cost of living. This voluntary rate is currently set at £13.45 per hour across the UK, rising to £14.80 in London.

Despite the increase in the legal minimum, a full-time worker earning the National Living Wage could still take home over £1,400 less per year than someone paid the real Living Wage. In London, this gap is even more significant, exceeding £4,000 annually. These differences can have a meaningful impact on household budgets, potentially covering several months of essential costs such as food or transport.

Across the UK, it is estimated that around 4.4 million jobs are paid below the real Living Wage. This highlights an ongoing challenge for lower-paid workers striving to maintain a reasonable standard of living. Many employers are choosing to go beyond the legal minimum.

More than 16,000 organisations have voluntarily committed to paying the real Living Wage, recognising the benefits not only for employees but also for business performance and wider society.

While the rise in the National Living Wage is a positive step, the gap between statutory pay and the cost of living remains an important issue for both employers and policymakers to consider.

For employers reviewing their pay structures, becoming an accredited Living Wage Foundation Living Wage Employer is one way to demonstrate a clear commitment to fair pay and employee wellbeing. To find out more about accreditation and the benefits it can bring, visit: https://www.livingwage.org.uk.

Rising minimum wage – but is it enough?

121 HR Solutions Ltd