07/09/2026
Social Value Idea Lab: committing to the Real Living Wage
This idea might sound like an easy or obvious one, but we do meet organisations that have not quite pinned it down yet.
Paying the Real Living Wage, and becoming accredited by the Real Living Wage Foundation comes up a lot. It's important for many different Social Value Themes, including Fair Work; Employment, Skills and Pay; Supply Chain Resilience; and Equal Opportunities.
The Real Living Wage is separate from the National Minimum Wage and National Living Wage, which are set by the Government and are a legal requirement. The Real Living Wage is voluntarily paid, and is adjusted each year based on the real cost of living to ensure that employees can cover essential living costs (rent, food, bills and more). Many forget that the wages set by the government are often not enough to support people, even when working full-time or multiple jobs.
That's why the Real Living Wage is needed and many local and central government organisations/departments now expect suppliers to pay the Real Living Wage as standard.
Yet, not everyone is accredited because it can feel like a big commitment particularly for small and mediumβsized organisations. We'd encourage all organisations to pursue accreditation. If you aren't accredited, paying the Real Living Wage and creating an action plan toward accreditation, is something you can commit to on a contract level as part of Social Value.
What does it mean in practise?
- Paying the Real Living Wage for all employees, including entryβlevel roles, apprentices and work placements.
- It means committing to annual pay increases linked to the cost of living, which can feel uncertain.
- It means having a clear plan to move contractors towards being paid the Real Living Wage, not just your directly employed staff.
- The Real Living Wage rate is higher in London, reflecting the higher cost of living, which needs to be factored into workforce and contract planning.