Living Wage Week is a great time to think about what it really means to make ends meet in London. Our city offers extraordinary opportunities, but it comes at a significant cost. Londoners’ basic living costs are typically 16-53% higher than the rest of the UK, with Londoners in poverty more likely to be in employment than not.
When the average London rent now tops £2,500 a month – over double the UK average – and nearly a million working Londoners are living in poverty, it’s clear that earnings aren’t keeping pace with the real cost of living in our city.
As a credit union serving London’s communities, we see the impact of low pay every day. Our members tell us about lying awake at night worrying whether a broken washing machine or an unexpected bill will push them into crisis. People working full-time jobs tell us about struggling with the weekly food bill, or making impossible choices between putting the heating on replacing a worn pair of shoes. These aren’t occasional hardships – they’re the daily reality of just surviving, not living, for too many working Londoners.
That’s why we’re committed to the London Living Wage at London Mutual Credit Union (LMCU). It’s a decision that reflects who we are and what we believe in as a community-focused financial organisation. Every day, we see first-hand how challenging London’s cost of living can be for our members. We can’t just observe this reality – we have to play our part in changing it.
Understanding London’s Living Wage rates in 2024
There are now several different wage rates in London, and they can sound confusingly similar. Here’s what makes each one distinct:
- The London Living Wage is £13.15 per hour (rising to £13.85 by early next year). This is the minimum we choose to pay at LMCU. This rate is set by the Living Wage Foundation, and it’s up to individual employers whether to pay it. The London Living Wage is calculated based on what people actually need to truly live in London – not just cover the basics, but afford the normal things that make life in our city worthwhile.
- The Real Living Wage is similar and also set by the Living Wage Foundation, but for outside London where costs are (thankfully!) a bit lower. It’s now £12.60 per hour – above the legal minimum, because living costs are rising everywhere.
- The National Living Wage is the legal minimum requirement set by the UK Government (they borrowed the ‘living wage’ name, which is a bit misleading). It’s currently £11.44 for over-21s, but anyone who’s tried renting in London knows why that’s not enough here – especially when the average Londoner spends 40% of their take-home pay on rent.
The impact of fair wages in London
As a credit union, we’re all about helping members make their money work harder for them and for their goals and aspirations. Paying the London Living Wage is about putting those values into action. We want our team members, like everyone in London, to be able to really live in this city, not just survive in it.
Yes, paying the London Living Wage costs more, but it’s an investment we’re proud to make. We’re a credit union, and our success isn’t measured by the size of our profits, but by how well we support our community to grow and thrive.
Living Wage Week is about recognising that too many people across London still earn only enough to survive, not live, in their own city. As a community-focused organisation, we’re committed to being part of the solution. It’s not just about doing the right thing, it’s about building the kind of workplace and city we want to be part of.
