Real Living Wage Employers in the UK

Current Statistics (2025)

• Over 16,000 accredited Living Wage employers in the UK as of July 2025, representing substantial growth in voluntary adoption of the real living wage standard
• 490,000 workers receive annual pay rises through the real Living Wage as of October 2025, with nearly half a million employees benefiting from this voluntary commitment
• 1 in 7 UK workers (approximately 14% of the workforce) are employed by Living Wage accredited employers as of 2024
• £4.2 billion in additional wages have been delivered to low-paid workers since the campaign began in 2011
• The real Living Wage provides £2,418 more annually for full-time workers compared to the National Living Wage (£13.45 vs £12.21 per hour outside London)
• In London, the difference is even more substantial at £5,050 more annually (£14.80 vs £12.21 per hour)

Historical Growth Trends

• 2011: Living Wage campaign officially launched by the Living Wage Foundation
• 2013: Approximately 400 accredited employers (baseline before November 2013)
• 2014: Number reached 900 accredited employers by September 2014
• 2015: Growth continued to 1,300 accredited employers, covering 80,000 workers
• 2016: Expansion to 3,000 UK businesses paying the Living Wage
• 2022: Milestone of 11,000 accredited businesses (September 2022)
• 2025: Surpassed 16,000 accredited employers
• Growth acceleration: ~2,500 new employers joined in 2024–2025
• Accredited employers grew by ~1,678% from 2013 to 2025 (from 900 to 16,000+)

Large Corporation Examples

Retail Sector

• IKEA
• Uniqlo
• Lush Cosmetics

Financial Services

• Nationwide Building Society
• Aviva
• KPMG
• Barclays

Professional Services

• Linklaters
• Google

Sports & Entertainment

• Everton FC
• Chelsea FC
• Liverpool Football Club

Other Major Employers

• Oxfam GB
• National Portrait Gallery
• Nestlé (UK operations)
• Save the Children

Small and Medium-Sized Enterprises (SMEs)

• The Hill Club
• Truro City Council
• University of Salford
• Queen Mary University of London — first UK university to implement Living Wage for all staff
• Accreditation fees start at £69 for small organisations
• SMEs represent a significant portion of the 16,000+ accredited employers

Sector Distribution

Highly Represented Sectors

• Retail
• Finance and Professional Services
• Hospitality and Catering
• Sports and Entertainment
• Cleaning and Security Services
• Education
• Charity and Non-Profit
• Local Government
• Healthcare
• Manufacturing

Geographic Representation

• Employers span all UK regions (England, Scotland, Wales, Northern Ireland)
• London has a higher rate (£14.80 in 2025)
• Northern Ireland has the highest proportion of low-paid jobs
• Scotland has the lowest proportion of low-paid jobs

Impact on Workers

Financial Benefits

• Average of £1,950 extra annually for full-time workers who receive Living Wage pay rises
• For 2025–26: £2,418 annual boost outside London vs National Living Wage
• In London: £5,050 more annually vs National Living Wage
• £4.2 billion total returned to workers since the campaign began

Demographics Most Impacted

• Part-time employees benefit disproportionately
• Women: 60% of low-paid jobs are held by women
• Racialised communities: higher rates below Living Wage among Bangladeshi, Pakistani, and Black/African/Caribbean workers
• Outsourced workers: cleaners, security staff, and contractors
• Young workers (18+): real Living Wage applies from 18

Quality of Life Improvements

• Better ability to manage essentials: rent, bills, food, childcare, transport
• Enhanced mental health and well-being
• Improved financial security
• Improved motivation and dignity
• Reduces severe financial hardship; high food bank usage among low-paid workers

Business Benefits for Employers

Recruitment and Retention

• 62% reported improved recruitment
• 60% reported improved staff retention
• 87% reported enhanced business reputation

Operational Benefits

• 94% reported overall benefits from paying the Living Wage
• 66% differentiated from competitors
• 64% improved staff-management relations
• Improved motivation and productivity
• Reduced absenteeism

Commercial Advantages

• Over one-third secured new contracts or funding
• Enhanced brand value and CSR profile
• 85% of UK public believe companies should voluntarily pay the Living Wage if able
• 54% of consumers more likely to use Living Wage employers
• Access to marketing resources, networking, and the Living Wage Employer Mark

Recent Developments (2024–2025)

• 2025–26 rates announced 22 Oct 2025: £13.45 UK-wide and £14.80 in London
• Implementation deadline: 1 May 2026
• ~2,500 new employers joined in the past year
• Gap widened vs National Living Wage
• Projection: 25% of low-paid workers moving to real Living Wage → £1.2bn boost to UK economy

Complementary Schemes

Living Hours

• 269 accredited Living Hours employers (Oct 2025)
• Benefits 80,000 workers with secure working hours
• Key standards include:
  • Contracts reflecting actual hours worked
  • Minimum 16 hours per week (unless otherwise requested)
  • 4 weeks’ notice of shifts with guaranteed payment if cancelled
• Addresses 6.4 million UK workers in insecure work; 3.1 million are low-paid insecure

Living Pension

• 91 accredited Living Pension employers (Oct 2025)
• Target annual savings of £3,150 (£1,840 employer contribution)
• Only 5% of low-paid workers save adequately for retirement; 80% overall aren’t saving enough
• 17% of low-paid workers reduced or stopped pension contributions due to cost-of-living pressures

Key Challenges and Context

Remaining Issues

• 4.5 million jobs (15.7%, ~1 in 6) paid below the real Living Wage in April 2024
• 32.2% of part-time jobs (2.5 million) remain below Living Wage threshold
• Public sector wages sometimes lag behind (e.g., concerns around NHS)
• Inflation and rising business costs challenge smaller firms

Cost of Low Pay

• 59% of low-paid workers face severe financial hardship
• 45% lack confidence to cover a £200 unexpected cost
• 24% have no savings
• 19% have less than £10 weekly after essentials
• 48% of low-paid renters struggle after housing costs

Voluntary Nature

• Real Living Wage is voluntary, unlike the statutory National Living Wage
• Accreditation requires paying all employees and regular contractors
• Acts as “civil regulation” complementing statutory minimums and unions

Notable Milestones

• 2011: Living Wage Foundation established
• 2014: 900 employers milestone
• 2016: National Living Wage introduced by government (distinct)
• 2022: 11,000 employers
• 2025: 16,000+ employers; ~490,000 workers covered
• Total impact: £4.2bn+ transferred to low-paid workers since inception

Recognition and Evidence Base

• Extensive research by Cardiff Business School and others
• Living Wage Foundation provides independent calculation and oversight via Resolution Foundation and Living Wage Commission
• Influenced government policy on minimum wage rates
• Shows voluntary initiatives can drive social and economic improvements
• Cross-sector support: business, unions, civil society, and political leaders