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The living wage is an hourly rate of pay set annually by reference to the basic cost of living in the UK and London. 

The current living wage is £7.85 per hour outside London and £9.15 per hour in London.

Unlike the National Minimum Wage, employers may choose to pay the living wage on a voluntary basis. 

This note explains the living wage and how it is calculated, provides an overview of the policy response to the living wage debate and discusses reaction to it.

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