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What's the difference between the real living wage and national living wage?

The rate of pay for real living wage earners is set to go up - why is it different from the national living wage?

Patrick Langmaid, Mother Ivey's Bay Holiday Park owner (right) with ABI CEO Richard Jones. Mother Ivey's Bay is an advocate for the Living Wage Foundation(Image: JOHN GARON)

The real living wage is to increase to £10.85 an hour in London and £9.50 across the rest of the º£½ÇÊÓÆµ, giving a pay rise for more than 250,000 workers.

The new rates, announced by the , are an increase of 10p in the capital and 20p elsewhere, and will be paid by almost 7,000 employers.

The new earnings have to be in place by May 2021.

But the rise won't apply to every worker - just those employed by organisations who have signed up to the Living Wage Foundation.

The real Living Wage is an independently calculated figure used by the Living Wage foundation that is based on what people need to get by after taking into account costs like housing, utility bills and food.

It should not be confused with The Minimum Wage, a statutory minimum wage for under 25s or the National Living Wage, for over 25s, which is set by law.

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The difference was made more unclear when in April 2016, the government introduced the higher minimum wage rate for all staff over 25 years of age, renaming it the ‘national living wage’ from its original name, the 'national minimum wage'.