IKEA has introduced a £13.45 rule that will benefit thousands of employees nationwide. The major retailer is committed to paying staff members the voluntary Real Living Wage, accredited by the Living Wage Foundation.

The voluntary pay is paid by over 16,000 businesses in the UK, meaning millions of workers earn an hourly rate of 13.45, with those in London receiving £14.80. The rates were announced last October, with employers having to implement them by May 1, 2026. The foundation says that the rate "remains the only UK Wage rate calculated on the real cost of living".

At present, the National Living Wage set by the Government is £12.71 for over-21-year-olds across the UK. While the Living Wage Foundation welcomed the pay rise that was implemented from April, it claims that "it will still leave the UK’s lowest paid workers short of what’s needed for a decent standard of living".

According to research, a full-time UK worker on the National Living Wage would need to be paid £1,443 more to bring their income in line with a real Living Wage, which would amount to four months of food or three months of transport costs, based on national averages.

Katherine Chapman, Executive Director of the Living Wage Foundation, said: “The rise to the minimum wage is a welcome boost for low-paid workers who have been hit hardest by years of high prices. It still falls short of the voluntary real Living Wage, the only UK wage rate independently calculated based on the cost of living, currently £13.45 across the UK and £14.80 in London.

"Despite tough times for businesses over the last year, we are still seeing more employers join the movement of over 16,000 Living Wage Employers who are committed to paying their workers in line with the cost of living. That’s because they know the Living Wage is good for people, good for society and good for business.”

In other IKEA news, the home retailer is also working to tackle child poverty in the UK. IKEA has teamed up with Baby Bank Alliance, who support and advocates for UK baby banks and families, to ensure babies and children have the essentials they need to thrive.

From February 1, the retailer has been donating £1 from each sale of the GREJSIMOJS range to the Baby Bank Alliance and will continue doing so until April 26.

Dani Adams, Executive Lead of the Baby Bank Alliance, said that the proceeds will help "to sustain our support of baby banks" and ensure more babies and children have access to essentials needed to "thrive".