London Living Wage Policy

The real Living Wage is an hourly rate set independently and updated annually according to the basic cost of living in the UK and London — distinct from the government's National Living Wage, which is a minimum wage. Employers of any size and industry accredit voluntarily, and the campaign is championed by the Living Wage Foundation, Citizens UK and the Mayor of London.

Its stated objectives are to improve employee retention and engagement, business reputation and productivity, and employees' social, emotional and financial welfare.

The real Living Wage rate is calculated independently each year from the actual cost of living (fuel, energy, rent, food) in the UK and London. Rates for 2023-24 were announced on 24 October 2023, with employers given until 1 May 2024 to implement them.

The campaign has impacted over 460,000 employees and delivered over £1.6 billion in extra wages, with more than 14,000 accredited employers — one in thirteen UK workers now works for one. In 2021 a full-time London worker on the real Living Wage earned £4,173 more than on the government minimum, and by December 2011 at least 10,000 London workers had been moved out of poverty by the campaign. A comparative study found 50.3% of London Living Wage workers scored above average for psychological wellbeing versus 33.9% of non-LLW employees (Flint, Cummins & Wills 2013).

The Living Wage Foundation reports the policy improves employer brand and staff productivity and motivation, with more than half of surveyed employers saying it improved the quality of job applications and over a third crediting it with helping secure contracts and funding. Recommended replication steps include communicating the commitment internally and externally, preparing for organisational change, phasing in any price increases, and encouraging supplier businesses to adopt the policy too.