The Living Wage

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.