Understanding the Real Living Wage in Gravesham
Posted on 4th February 2025
At the heart of every thriving community are the people who live and work there. In Gravesham, local businesses, workers and families all contribute to making the area a great place to live. However, as the cost of living rises, ensuring that wages keep up with everyday expenses is more important than ever.
The Real Living Wage
That’s where the real Living Wage comes in. Unlike the National Living Wage, which the government sets, the real Living Wage is independently calculated to reflect the actual cost of living. It considers how much people need to afford essentials like food, housing, childcare and bills, rather than just setting a legal minimum.
For 2025, the real Living Wage is set at:
£12.60 per hour across the UK
£13.85 per hour in London
This voluntary rate is paid by over 15,000 employers across the country who choose to go beyond the minimum, ensuring their employees earn enough to meet everyday costs.
How is the Real Living Wage Calculated?
The real Living Wage is based on research into what people need to achieve a decent standard of living. It is reviewed annually and follows three key steps:
Defining essential needs – The Centre for Research in Social Policy at Loughborough University gathers input from people across different household types to determine what should be included in a ‘minimum basket of goods and services.’ This includes everyday costs like food, rent and transport, as well as essentials such as a school uniform or an emergency trip to the dentist.
Calculating costs – Prices for these essential goods and services are checked directly with retailers, transport providers and councils to reflect real-life expenses. The cost of living in London is assessed separately to account for higher costs such as rent.
Setting the rate – The Resolution Foundation then calculates an hourly wage based on these costs, weighted according to different household types and considering taxes and benefits. The rates are reviewed and overseen by the Living Wage Commission, which includes businesses, trade unions, and low-pay experts.
The Difference Between the National Living Wage and the Real Living Wage
The real Living Wage is voluntary, but many employers choose to pay it to ensure their staff can earn enough to meet basic costs.
In contrast, the National Living Wage is the legal minimum that businesses must pay workers aged 21 and over, as set by the government.
From April 2025, this will rise to £12.21 per hour, however, even with this increase, the real Living Wage will still be worth an additional £760 per year for a full-time worker.
Why Does the Real Living Wage Matter in Gravesham?
For many people, earning 'just enough to get by' isn’t always enough to cover unexpected costs or participate fully in the community. A 2024 survey found that 42% of workers earning below the real Living Wage had less than £10 left at the end of the month after paying for essentials.
Lower wages also affect different groups in disproportionate ways. In 2023:
15% of jobs held by women were paid less than the real Living Wage, compared to 10% for men.
Workers from racialised communities, LGBTQIA+ individuals and people with disabilities were more likely to be on low wages.
Ensuring fair pay can make a real difference - not just for individuals but for the local economy too. Research by the Smith Institute suggests that if just a quarter of low-paid jobs met the real Living Wage standard, it would add over £1 billion to the UK economy and significantly boost spending in towns like Gravesend.
Supporting a Stronger Community
When people have more money in their pockets, they are more likely to contribute to their local area. This could mean supporting independent shops, visiting local cafés or investing in community activities. These small actions help to create a stronger, more resilient local economy where businesses and residents thrive together.
The real Living Wage is about making sure that work provides people with the stability they need to live well, support their families and take part in their community.
By raising awareness of the real Living Wage in Gravesham, we can help highlight the importance of fair pay and its role in building a stronger, more inclusive future for everyone.
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