What the new Real Living Wage increase means for employers and candidates in London
The real Living Wage has just increased, and it is big news for employers and candidates across London. At Australasian Recruitment Company we work with businesses and professionals every day, so we see the real impact that fair pay has on attracting talent, improving retention and supporting people through the rising cost of living in London.
The Living Wage Foundation has confirmed that the London real Living Wage is rising to £14.80 an hour. This voluntary rate is designed to reflect the actual cost of living in the capital, which remains one of the most expensive places to live and work in the UK.
Whether you are hiring, job seeking or evaluating your current pay structure, this update affects you.
What has changed with the London real Living Wage?
The London real Living Wage is independently calculated by the Living Wage Foundation and is higher than the statutory National Living Wage. It is based on the true cost of housing, food, travel and essentials in the capital.
Key points:
• The London real Living Wage rises to £14.80 an hour.
• The UK wide real Living Wage rises to £13.45 an hour.
• The London rate remains significantly higher than the legal minimum, highlighting the high cost of living in the city.
This increase represents a meaningful annual uplift for full time workers and is a welcome step for people who rely on hourly pay.
Why this matters for London employers:
Stronger talent attraction
Paying the real Living Wage helps employers stand out in a competitive London recruitment market. Candidates actively look for Living Wage employers when job searching, and it can raise the quality and volume of applications you receive.
Better retention and morale
Fair pay directly supports wellbeing. When employees feel secure and valued, they stay longer, engage more and contribute more positively to the workplace.
A stronger employer brand
Living Wage accreditation signals that you are a responsible employer that cares about fair and sustainable employment. It supports your reputation with clients, candidates and your current workforce.
Forward planning for payroll and budgets
London businesses may need to review pay structures, contractor agreements and budgets to ensure that hourly rates remain competitive. Planning early reduces pressure later in the year.
Supply chain considerations
The Living Wage Foundation encourages employers to extend fair pay to contracted workers such as cleaners, reception staff and security teams. Reviewing these contracts can strengthen compliance and reduce reputational risk.
Why the real Living Wage increase matters for candidates:
Better financial security
With rent, travel and food costs rising in London, the new rate gives hourly workers a more realistic chance of covering essentials without being stretched.
More informed job searching
As you compare roles, the real Living Wage is a useful benchmark. Many candidates now prioritise London employers who pay the real Living Wage or who are accredited by the Living Wage Foundation.
A stronger position for negotiation
If you are currently earning below the new London rate, this announcement gives you a valuable reference point when discussing pay progression or considering a new role.
Clearer progression opportunities
Living Wage employers often invest more widely in development, wellbeing and progression, which can create more stable long term career opportunities.
Next steps for employers and candidates in London:
For employers
• Review your pay structure and identify roles below £14.80 an hour.
• Assess the impact on contractors and suppliers.
• Communicate your commitment to fair pay in adverts and onboarding.
• Highlight your Living Wage position as part of your recruitment strategy.
• Speak to your recruitment partner for tailored market insights.
For candidates
• Check whether your current or prospective employer pays the real Living Wage.
• Use the London rate as a benchmark when discussing new opportunities.
• Consider overall cost of living when evaluating an offer.
• Ask employers about their commitment to fair pay and progression.
Final thoughts
The rise to £14.80 for the London real Living Wage is more than an update to hourly pay. It reflects the growing need for fair, sustainable wages that support people living and working in London.
For employers it is an opportunity to strengthen culture, retention and brand reputation.
For candidates it can bring greater financial security and more rewarding work environments.
At Australasian Recruitment Company we are here to support your next steps. Whether you want to review your pay strategy or explore new roles that offer progression and fair pay, our team can help you navigate the London market with confidence.