What is the real Living Wage?

Summary

This web-based policy resource from the Living Wage Foundation sets out the definition, calculation basis, and current rate of the Real Living Wage in the UK, distinguishing it from the government-mandated National Living Wage. The rate is calculated annually using a basket-of-goods approach reflecting actual household costs, and is voluntarily adopted by accredited employers. It serves as a reference point for assessing wage adequacy across low-pay sectors, including food production, retail, and hospitality.

UK applicability

This resource is UK-specific and directly applicable to policy and practice discussions around fair pay in the food sector, where low wages and precarious employment are well-documented concerns. It provides a practical benchmark for employers, policymakers, and researchers assessing socioeconomic equity in food system employment.

Key measures

Real Living Wage hourly rate (£); comparison with National Living Wage; cost-of-living basket methodology

Outcomes reported

The resource defines and explains the Real Living Wage rate as calculated by the Living Wage Foundation, based on actual cost-of-living data rather than government minimum wage floors. It reports the methodology underpinning the annual rate-setting process and its relevance to workers across sectors including food and hospitality.

Topic tags