The UK has several wage rates that aim to ensure fair compensation for workers, but they differ in their calculation methods, coverage, and legal status.

Here's a breakdown of the National Minimum Wage, National Living Wage, and Real Living Wage: 

National Minimum Wage (NMW) 

The National Minimum Wage is the legal minimum hourly rate that most workers in the UK are entitled to, regardless of their age or the size of the employer.

The rates vary based on the worker's age and whether they are an apprentice.

As of April 2024, the NMW rates are: 

 - £6.40 for workers aged 16-17 

- £8.60 for workers aged 18-20 

- £6.40 for apprentices under 19 or in their first year of an apprenticeship 

The NMW is a legal requirement, and employers who fail to pay it can face fines and penalties from HMRC. 

National Living Wage (NLW) 

The National Living Wage is a higher minimum wage rate for workers aged 21 and over. It was introduced in 2016 and is reviewed annually by the government.

As of April 2024, the NLW rate is £11.44 per hour. 

While the NLW is higher than the NMW, it is still a legal minimum wage set by the government and not based on the actual cost of living. 

Real Living Wage 

The Real Living Wage is a voluntary hourly rate calculated annually by the Living Wage Foundation, a charity organization.

It is based on the actual cost of living, taking into account expenses such as housing, food, and utilities. 

As of April 2024, the Real Living Wage rates are: 

- £13.15 for workers in London 

- £12.00 for workers in the rest of the UK 

The Real Living Wage applies to all workers aged 18 and over, regardless of their location or employer.

It is not a legal requirement, but employers can choose to become accredited Living Wage employers by paying their staff the Real Living Wage rates. 

Over 14,000 employers across the UK are accredited Living Wage employers. 

While the National Minimum Wage and National Living Wage are legal requirements, the Real Living Wage is a voluntary commitment by employers to pay their staff a wage that reflects the true cost of living.

It aims to provide a decent standard of living for workers and their families. 

The new government have promised to introduce legislation on employment, including changes to the NMW and NLW, within their first 100 days in office; although the actual implementation of these changes may take longer due to the legislative process and potential consultations. 

We offer free, confidential, impartial, and independent advice on cost-of-living issues.

You can contact the Herts Citizens Advice line at 0800 144 88 48 or visit northhertscab.org.uk or stevenagecab.org.uk for more ways to get in touch.