- More than 72,000 workers in Scotland are set for a pay rise because over 3,900 employers in Scotland are signed up to pay the real Living Wage, including AG Barr, DC Thomson and Heart of Midlothian Football Club
- The real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover living costs and meet everyday needs. It is different from the government’s National Living Wage, which is the legal minimum employers must pay for over-21s.
- The new real Living Wage rates are now worth almost £2,500 more per year in the UK than the legal minimum, and over £5,000 more in London
- £4.2bn in extra wages has gone to low paid workers across the UK since real Living Wage campaign began in 2011, of which more than £680m is driven by employers in Scotland
More than 72,000 people working for more than 3,900 real Living Wage Employers in Scotland are set for a vital pay boost, as the real Living Wage rates rise to £13.45 an hour across the UK (85p increase), and £14.80 an hour in London (95p increase).
Recent research by the Living Wage Foundation shows that as inflation grew over the past year, 4.5m low-paid workers across the UK have struggled to make ends meet, with two in five (42%) having been forced to use foodbanks in the past year, rising to over half (56%) of low-paid workers with dependent children.
Our analysis of ONS figures in 2024 found 11.4% of jobs in Scotland are paid below the real Living Wage – around 288,000 jobs.
The scale of in-work poverty in Scotland is worsening, with a recent report by Joseph Rowntree Foundation (Poverty In Scotland 2025), noting 6 in 10 people in poverty in Scotland live in a household where someone works. The Poverty Alliance, who deliver Living Wage employer accreditation in Scotland are joining campaigners for Scotland Demands Better – a major rally in Edinburgh demanding better jobs that pay the bills, increased social security safety nets and investment in public services.
Real Living Wage vs ‘National Living Wage’
The real Living Wage is different to the government’s statutory minimum wage rate, which is called the ‘National Living Wage’ for those over the age of 21. The real Living Wage is a higher, voluntary rate that is independently calculated based solely on what is needed to cover living costs and live with stability and security. This includes covering household costs such as rent and energy bills, childcare and transport, as well as important costs like a warm winter coat for children, or a financial emergency like a broken boiler. The Government’s rate is the legal minimum businesses are required to pay by law.
The real Living Wage applies to all workers over the age of 18 working for a Living Wage Employer and is £13.45 an hour across the UK and £14.80 an hour in London. The National Living Wage applies to those over the age of 21 and is worth £12.21 an hour.
A full-time worker in Scotland earning the new, real Living Wage would earn £2,418 a year more than a worker earning the current government minimum.
The Living Wage movement continues to grow
Despite economic challenges, the number of employers signed up to pay the real Living Wage in Scotland has continued to grow. Living Wage Employers commit to paying all their staff, as well as their third-party contractors like cleaners and security guards, at least the real Living Wage. Across the UK, 1 in 7 employees now work for an accredited Living Wage Employer.
There are now over 3,900 Living Wage Employers in Scotland, with recent accreditations including Kiltane and Muir Group. They join half of the FTSE 100 companies including Diageo, household names like AG Barr, DC Thomson and Heart of Midlothian Football Club, as well as thousands of small businesses, who are choosing to pay the real Living Wage to provide workers and families with greater security and stability.
There are now over 250 Living Hours employers in the UK, of which 43% are based in Scotland, including Rowan Glen and Dear Green Coffee going beyond payment of the real Living Wage to also provide a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked.
Peter Kelly, Poverty Alliance CEO, said: “Thousands of workers in Scotland are struggling to make ends meet and are unable to plan for their future due to low paid, insecure work and rising living costs. It doesn’t have to be this way. Employers have an important role in tackling poverty, and we commend the leadership of more than 3,900 accredited Living Wage employers in Scotland that have already taken a stand to ensure workers can earn a wage that covers their needs, even in challenging economic times. But we need more employers to pay at least the real Living Wage, to release workers from the grip of in-work poverty. A just Scotland would see better jobs available for everyone who needs one, with wages that pay the bills. As part of the Scotland Demands Better campaign, we’ll be joining organisations and individuals on 25th Oct for a march and rally in Edinburgh, calling on political leaders to take bold action. We need governments at all levels to use every tool available to tackle poverty and deliver a better future for us all. Join us to say we demand better.”
Business and Employment Minister Richard Lochhead said:
“This increase will provide workers across Scotland with a vital pay boost to help them cope with rising living costs. Paying the real Living Wage doesn’t just support those on the lowest incomes – it also helps businesses to attract and retain staff, reducing recruitment and related costs.
“We have made paying the real Living Wage a requirement for organisations receiving public grants. This is helping Scotland lead the UK in the proportion of workers paid the real Living Wage or higher.”
Marie, who works at Aberdeen Laundry Services said:
“Before earning the real Living Wage, I was constantly juggling bills and worrying about unexpected expenses. Now I can actually plan for the future and even put a little aside each month. The financial stress reduction has been life changing.”
Tony Millar, Manager at Camera Obscura & World of Illusions
“Paying the real Living Wage is simply the right thing to do. At Camera Obscura & World of Illusions, we believe in recognising the hard work and dedication of our team. By committing to fair pay, we’re investing in our people, their wellbeing, and the positive energy they bring to our unique, hands-on visitor experience every single day.”
Katherine Chapman, Executive Director of the Living Wage Foundation, said:
“We all need a wage that covers life’s essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs. The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.
“Despite the challenges businesses face, the Living Wage employer movement continues to grow. These leading employers are showing that paying the real Living Wage has a far-reaching impact on staff, businesses and society.”