Real Living Wage Supplement FAQs

1. What is the Real Living Wage?

The Real Living Wage is an independently calculated hourly rate based on the cost of living in the UK and set annually by the Living Wage Foundation.

Living Wage Foundation

2. What is the Loughborough Real Living Wage (LRLW) Supplement?

The LRLW Supplement is a non-contractual payment applied by the University to ensure eligible colleagues receive at least the Real Living Wage, where substantive salaries would otherwise fall below this level.

The supplement also ensures pay differential at our lowest pay points anchored at the national RLW value.

3. Who is eligible for the LRLW Supplement?

Under the revised structure, the LRLW Supplement is payable to colleagues on spinal points F7 to F18 where the payment of the Real Living Wage has resulted in pay compression and lack of distinction between these spine points.

4. Why has the supplement and lower pay spine been reviewed?

The review responds to:

  • national changes to pay scales, including the removal of spinal points 5 and 6;
  • rapid increases in the Real Living Wage;
  • concerns about pay compression at the lower end of the scale.

The aim to to maintain fairness, progression and consistency across the pay structure.

5. What has changed as a result of the review?

Key changes include:

  • a revised LRLW Supplement structure;
  • clearer differentiation between spinal points;
  • a 0.9% increase between each relevant spinal point;
  • alignment with national sector pay changes.

6. When do these changes take effect?

The revised LRLW Supplement will take effect from 1 May 2026.

7. Is the LRLW Supplement contractual?

No, The LRLW Supplement is non-contractual and may be adjusted or withdrawn following future reviews.

8. Will this change my job grade?

No. The supplement does not affect your job grade, which continues to be determined through the University's job evaluation process.

9. Does the supplement affect my pension, tax or national insurance?

Yes. The supplement counts as pay and is therefore subject to tax, national insurance and pension deductions where applicable.

10. How often is the supplement reviewed?

The supplement is reviewed annually, normally alongside the cost-of-living increase applied from 1 August, and in line with future RLW updates.

11. What if I work part-time?

All figures are shown on a pro rata basis for part-time colleagues.

12. Who can I contact if I have questions?

If you have further questions, please contact hr.services@mailbox.lboro.ac.uk