Real Living Wage to rise by almost 7% from April
The Real Living Wage (RLW) is set to rise from April 2026 by almost 7%, increasing to £13.45 per hour (an 85p rise) across the UK and £14.80 (a 95p rise) in London. The RLW is voluntary with many large and small companies, including a number of nurseries across the UK, choosing to sign up to demonstrate their commitment to fair pay.
In Scotland, the situation is different, as nurseries that deliver funded Early Learning and Childcare (ELC) places are legally required to pay the RLW to their staff as part of their funding agreements. This means that an uplift in local authority funding rates is essential to ensure nurseries can meet the increased wage costs from April and maintain fair pay differentials between less experienced and more qualified workers.
Tim McLachlan, Chief Executive of National Day Nurseries Association (NDNA), said:
“While it’s good news that workers whose employers are signed up to the Real Living Wage will be earning more from April, we are very concerned about nurseries across Scotland who have to pay this wage as a legal requirement for delivering funded childcare.
“The Scottish Government must ensure that councils and providers are given sufficient money to meet this increase of almost 7% in lowest wages which will also impact on pay for the more experienced and qualified staff. They must be enabled to continue to deliver the high quality early learning and childcare that makes such a difference to children’s lives.
“In our recent investigation, NDNA discovered that a third of all Scottish councils are failing to follow the Government guidance on setting sustainable rates. They only took into account wage rises and did not factor in persistent inflation driven by higher food and energy costs. The Government and councils are getting plenty of advanced notice on this, so must make sure this money is in place, so nurseries are not running at a loss. This must happen in time for the uplift in April otherwise hundreds of nurseries will be facing serious cashflow challenges, putting their sustainability and childcare places at risk. Fewer nurseries and fewer places for children could be catastrophic to children’s education and wellbeing, and to working families who need reliable, flexible childcare.”
For more information about the Real Living Wage, visit the Living Wage Foundation website
Read NDNA’s full investigation on Scottish sustainable rates.
- Department for Education
- early years
- funding
- NDNA
- Scotland
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