Glossary · UK
What is London Living Wage?
A higher, voluntary hourly rate calculated by the Living Wage Foundation to reflect the higher cost of living in London, above both the Real Living Wage rate used elsewhere and the statutory National Living Wage.
Full Definition
The London Living Wage is a voluntary hourly rate, calculated annually by the Living Wage Foundation, that reflects the actual cost of living for a single adult working full-time in London -- covering housing, transport, childcare and other essentials at London prices, which run well above the rest of the UK. It sits above the standard Real Living Wage rate used by accredited employers elsewhere in the UK, which is itself calculated separately and is also voluntary, and both sit apart from the legally mandatory National Living Wage that applies to all workers aged 21 and over regardless of location, currently GBP 12.71 an hour for 2026/27. Employers that choose to pay the London Living Wage (or the standard Real Living Wage outside London) can apply to the Living Wage Foundation to become formally accredited Living Wage Employers, a status increasingly used by universities, local authorities, larger charities and some private employers as part of their employee value proposition and public commitments on fair pay, even though neither rate carries any legal force in the way the National Living Wage and National Minimum Wage do.