Welcome pay boost for low-paid workers

By the Joseph Centre for Dignified Work

In welcome news for low-paid workers across the UK, the independent Living Wage Foundation (LWF) has announced new pay rates that reflect rising living costs and the need for greater employment dignity. From today the “real” living wage rises to £13.45 per hour across the UK (an increase of £0.85, or roughly 6.7 %) and to £14.80 per hour in London (an increase of £0.95, or roughly 6.9 %).

The raise will benefit nearly half a million workers currently employed by more than 16,000 accredited Living Wage Employers. The Living Wage Foundation emphasises that these rates are voluntary, set independently based on what people realistically need to cover essentials such as rent, bills, food, transport and some modest savings cushions.

For workers in London, where housing and everyday costs are higher, the new £14.80 rate marks an especially welcome uplift. The LWF estimates a full-time worker on the new London rate will earn more than £5,000 a year extra compared with someone earning the statutory minimum wage.

Commenting on the announcement, Josh  Harris, Director of the Joseph Centre for Dignified Work, said:

“We warmly welcome this raise. It underlines the principle that work should enable dignity – not simply survival. But more than that, the living wage opens a wider conversation: what does dignified work in London look like? Pay is important, but stable hours, decent contracts and inclusive workplace cultures must also follow if we are to drive long-term change.”

The Living Wage movement highlights that many employers go further than just wage rates – for example by adopting “Living Hours” commitments, guaranteeing a minimum number of hours, notice of shifts and reliable contractual arrangements.

The economic context is challenging: inflation, housing cost pressures and higher everyday outgoings continue to squeeze working households. Against that backdrop, this pay increase can help many workers move from pay cheque to pay cheque to a more stable footing. The LWF reports that 42 % of low-paid workers had used food banks in the last year.

While this is a positive milestone, the Joseph Centre emphasises that it should be the beginning of a broader commitment to dignified employment, not the end. With London’s cost-of-living pressures among the highest in the country, every element of job quality matters: fair pay, yes, but also secure hours, inclusive practices and paths for progression.

In short: this raise is a welcome victory for fairness in pay – and a call to employers, policymakers and workers themselves to keep the conversation about dignity in work front and centre.