In a city where a night out can easily set you back fifty quid, every penny really does count. So the news of an increase in the Real Living Wage is sure to be welcomed with open arms (and wallets).
Many across Birmingham will be in for an imminent pay rise, as it’s just been announced that the Real Living Wage will be increasing from £12.60 to £13.45 per hour (an increase of 6.7%).
This is different from the statutory minimum wage set by the government. The Real Living Wage is the only UK wage rate calculated based on what is actually needed to cover living costs, including rent, bills, transport, and other essentials.
The wage is voluntarily paid by approximately 16,000 companies across the UK – almost half a million workers across the country will receive the pay rise.
Employers can opt in to pay the Real Living Wage, which is a slightly more generous amount than the government’s minimum wage. Uniqlo and the University of Salford are two of the latest companies to have gotten on board. Companies paying the higher wage have until May 1, 2026, to bring the increased rate into effect, but are being encouraged to do so as soon as possible.
Katherine Chapman, executive director of the Living Wage Foundation, said: “The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the cost of rent, bills, food and other essentials, and to live with stability and security.
“Despite the challenges businesses face, our movement continues to grow, with over 16,000 employers now accredited. These leading employers are showing that paying the real living wage has a far-reaching impact on staff, businesses and society.”
Find out more about the Real Living Wage here.