For the 15,000+ UK businesses that have voluntarily committed to the Real Living Wage, a significant date is approaching. While the government’s statutory National Living Wage typically grabs the headlines in April, accredited Living Wage employers have until May 1, 2026, to finalise their annual rate increases.
If you are an accredited employer, here is everything you need to know about the upcoming deadline and the new rates.
The new 2026 rates
The Living Wage Foundation announced the rates in late 2025, providing a six-month window for businesses to adjust their payroll. Unlike the government minimum, these rates are independently calculated based on what people actually need to afford the basket of goods required for a decent standard of living.
| Region | New Hourly Rate (2026) | Annual Increase |
| UK-wide (Standard) | £13.45 | +£0.85 (6.7%) |
| London | £14.80 | +£0.95 (6.9%) |
Why the difference?
The London Living Wage is higher to reflect the significantly steeper costs of housing, childcare, and transport in the capital. While the government’s National Living Wage (£12.71 as of April 2026) is a flat rate across the country, the Real Living Wage recognises that a pound doesn’t go as far in Brixton as it might in Blackpool.
What employers need to do by the 1st of May
If you are an accredited Living Wage Employer, the clock is ticking. Here are your primary responsibilities before the deadline:
- Update your payroll: Ensure all staff aged 18 and over are moved to the new rates.
- Audit third-party contracts: A core part of accreditation is ensuring that regularly contracted staff (such as cleaners, security, or caterers) also receive the new rates.
- Communication: You are required to inform your employees of the pay increase. Beyond compliance, this is a great moment to reinforce your commitment to being a fair-pay employer.
- Check for pay compression: With the floor rising, look at the salaries of supervisors or those just above the Living Wage to ensure there is still a meaningful gap in pay for their extra responsibility.
The business case for the Real Wage
It’s easy to view the 1st of May as just another compliance hurdle, but the benefits of staying accredited often outweigh the costs:
- Retention: 75% of Living Wage employers report increased motivation and retention rates.
- Reputation: Displaying the Living Wage badge helps you stand out to ethical consumers and top-tier talent.
- Productivity: Workers who aren’t stressed about their next electricity bill are more engaged and productive during their shifts.
Note: The Real Living Wage is voluntary. If you haven’t signed up yet but want to join the movement, you can apply for accreditation via the Living Wage Foundation.
Is your business ready for the transition?
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lreynolds@refreshinglawltd.co.uk
Lousha Reynolds
Refreshing Law
