London minimum wage: What you need to know about pay, living costs, and who it affects
When you hear London minimum wage, the legally required lowest hourly pay rate for workers in Greater London, set by the UK government and adjusted annually. Also known as the National Living Wage, it’s not just a number—it’s the baseline that shapes whether someone can afford rent, food, or even a bus ticket in the capital. As of April 2025, the London minimum wage stands at £12.25 an hour for workers aged 21 and over. That’s higher than the national rate of £11.44, because the cost of living here is brutal. But here’s the catch: even that rate doesn’t cover the basics for many people.
The National Living Wage, the official UK minimum pay rate for adults, enforced by law and distinct from voluntary living wage schemes is set by the government’s Low Pay Commission. But the living wage, a voluntary rate calculated by the Living Wage Foundation based on actual housing, food, and transport costs is £13.15 in London. That’s the amount experts say you need just to get by—not to save, not to travel, not to handle an emergency. Thousands of workers in London earn the legal minimum but still rely on food banks, skip meals, or work three jobs. It’s not because they’re lazy. It’s because housing here eats up half your paycheck before you even step out the door.
Who does this affect? Baristas, cleaners, delivery drivers, care assistants, retail staff—people doing essential work but often stuck on zero-hours contracts or part-time shifts. A full-time worker on the London minimum wage brings home about £2,100 a month before tax. Rent for a one-bedroom flat in Zone 2? Around £1,800. Add utilities, travel, and groceries, and you’re left with £100. That’s not a budget. That’s survival mode. And it’s not getting better. While wages have risen, so have energy bills, council tax, and childcare costs. The gap between what you’re paid and what you need keeps growing.
You’ll find posts here that dig into the real impact: how the minimum wage ties into homelessness, why some London boroughs pay more than others, and what happens when workers can’t afford to take sick days. You’ll see data on who’s most affected—women, young people, migrants—and how the system is designed to keep them barely above water. There’s no sugarcoating it: the London minimum wage isn’t a living wage. It’s a floor. And right now, that floor is sinking.
What is the living wage in London in 2025?
The London living wage is £13.15 per hour in 2025-far above the legal minimum. Find out what it really takes to survive in the city, who pays it, and why so many workers still can't make ends meet.