By Tania Goodman, Bethany Mevrick

A rise in the real Living Wage was announced this week, with around 180,000 workers set to receive a pay boost as a result. The real Living Wage is a voluntary scheme that pays employees by reference to the real cost of living. It was designed by the Living Wage Foundation as a seemingly fairer alternative to the compulsory National Living Wage.

The National Living Wage is calculated at 55% of the median wage and, according to the Living Wage Commission, fails to cover families’ basic needs. The real Living Wage, on the other hand, is an independently-calculated wage based on a basket of household goods and services. It takes into account factors such as housing, food, clothing and commuting costs.