Living Wage

Rates from 31 October 2016: Living Wage £8.45 per hour (2.4% increase) and London Living Wage £9.75 per hour (3.7% increase).  

What is the Living Wage?

The Living Wage is defined by the Living Wage Foundation as the hourly rate of pay “deemed adequate for a worker to provide their family with the essentials of life”. In London the current rate is £9.75 per hour. Outside of London the current rate is £8.45 per hour.

Unlike the National Minimum Wage (NMW) and the National Living Wage (NLW), the Living Wage has no statutory basis but its has been adopted voluntarily by a range of public and private sector organisations, including some HEIs. 

Who sets the Living Wage?

The campaign is run by the Living Wage Foundation, which offers accreditation to employers that pay the Living Wage and provides support and advice to employers and seeks to influence employers.

The London Living Wage has been set by the Greater London Authority since 2004 and uses a different methodology from the Living Wage.

The Living Wages are calculated independently by the Resolution Foundation. 

When are the rates uprated?

The rates are uprated in the first week of November every year. The Living Wage rates were last uprated on 31 October 2016.

Further information

UCEA's briefing on the Living Wage (members only)

The Living Wage Foundation

Living Wage methodology

Living Wage Commission - Final Report

Minimum Income Standard in the United Kingdom

"Living Wage Employers: evidence of UK Business Cases" (November 2015) - University of Strathclyde research report

KPMG Living Wage report (October 2015)

Cost and Benefits of a Living Wage - Summary of research report by Queen Mary, University of London

Independent Workers of Great Britain - note of HRD briefing meeting February 2015

UCEA paper on estimating the value of the HE reward package

Page last updated January 2017