Real Living Wage: what it is, how much it pays, and why millions still aren’t getting it

The real cost of working and living

Most people feel it the moment they open a bill. Food, rent, travel and energy have gone up far quicker than wages over the last few years.

Even with the National Living Wage rising again in April 2026, many workers still say they are running out of money long before the end of the month.

This is where the Real Living Wage comes in.

It is meant to show the amount a worker needs to earn to cover the true cost of life in Britain. It is not a legal rate.

No one can force your boss to pay it. But it is a helpful benchmark if you are trying to understand whether your wages are keeping up with the world around you.

What the Real Living Wage is

The Real Living Wage is set by a charity called the Living Wage Foundation.

Every year they look at the price of things we all need, such as food, rent, travel, energy and household essentials.

They then work out an hourly rate that gives a full time worker enough to get by without constantly falling behind. The most recent update was in October 2025.

The Real Living Wage is:

Across the UK: £13.45 an hour
In London: £14.80 an hour

The London rate is higher because living costs in the capital are in a different league.

Both figures are based on data from the Office for National Statistics, research groups and cost of living trackers.

Why it is different from the National Living Wage

The National Living Wage is the legal minimum. From April 2026, it will rise again for workers aged 21 and over. We have covered that rise on Skint Dad, as it will help millions of people.

The problem is that the legal minimum is still not the same as the amount you need to live comfortably.

Even after the 2026 rise, the National Living Wage will still be lower than the Real Living Wage. That gap is the reason so many workers still struggle.

If you work full-time, the difference adds up fast. A worker on the Real Living Wage earns roughly £2,400 more a year than someone on the legal minimum.

In London, the gap is closer to £5,000 a year. That extra money could cover a year of school dinners, months of food shops or a chunk of rent.

How many people still earn less

Right now, about 4.5 million jobs in the UK pay less than the Real Living Wage. That is nearly one in six jobs.

It is the biggest rise in low paid work since the Living Wage Foundation began tracking the numbers.

The roles are spread across retail, care, hospitality, cleaning, admin and delivery work, so it is not just one area feeling the pressure.

More than sixteen thousand employers have signed up to pay the Real Living Wage, but that still leaves most workers outside the scheme.

This explains why so many people say they are still falling behind even when they work long hours.

What a difference it can make

When you talk to people who have moved from the legal minimum to the Real Living Wage, you hear the same thing again and again.

Bills become more manageable. You worry less about every shop. You stop counting down the days to payday quite as anxiously.

How to check your own pay

If you are not sure whether your workplace pays the Real Living Wage, you can look it up. The Living Wage Foundation has a public list of accredited employers.

If your workplace is on the list, you should already be paid the higher rate. If it is not, your employer is sticking to the legal minimum or their own rate.

When April 2026 arrives, make sure your payslip shows the new National Living Wage rise. If not, speak to your manager or the payroll team. The legal rates must be applied.

What you can do if you earn less

If your employer pays the legal minimum, they are within the law. The Real Living Wage is a choice.

You can still ask whether they have considered joining the scheme. You can also look for jobs that advertise Real Living Wage pay, as more employers are adding it to job listings.

If changing jobs is not an option, there are still ways to improve your position.

That might mean taking extra hours where possible, finding small side hustles that fit around family life or cutting costs on things like food, energy or travel.

Even small steps often help when you are trying to stretch a tight budget.

Final thoughts

Wages are rising next year, and that will help. But the Real Living Wage gives a clearer picture of what workers actually need in today’s Britain.

If your pay feels too low for the life you are trying to live, you are not imagining it. The numbers back it up.

If you want help boosting your income or cutting your costs, we have plenty of guides that can support you through the tough months ahead.