Living Wage Foundation responds to the Government's increase to the National Living Wage to £12.71

Ahead of tomorrow's Autumn Statement, the Government announced an increase in their National Living Wage to £12.71/hour for those aged 21+. 

Compared to the National Living Wage rates coming into effect in April 2026, the difference in salary for someone working full-time is £1,440 less than someone earning the real Living Wage across the UK, and £4,070 less for workers in London than the London Living Wage. 

Katherine Chapman, Director of the Living Wage Foundation, said: 

"The boost to the legal minimum wage is a really positive move that will ease some of the pressure on low paid workers hit by sharp price rises over the last year. It will still fall short of the voluntary real Living Wage which is the only wage rate based solely on the cost of living. The real Living Wage is currently £13.45 in the UK with a higher rate of £14.80 in London. 

Over 16,000 employers are already committed to going beyond the statutory minimum to make sure all their workers, including contractors like cleaners and security guards, are always paid a wage that meets living costs so can live with dignity. Half the FTSE 100 as well as thousands of smaller companies are part of this movement because they know the real Living Wage is an investment in their workforce which builds a stronger business through better morale, retention and productivity.” 

Find out more about the real Living Wage rates here