The Living Wage foundation
For over 20 years, the Living Wage Foundation has championed decent wages, working with nearly 16,000 employers, securing over £4.2 billion in pay rises for low paid workers and changing millions of lives.
But high levels of insecure work are trapping millions of people in poverty, which makes it impossible to plan a life.
Living Hours Accreditation
The Living Hours accreditation claims to sets the standard for what good work looks like, ensuring all employees have the security they need to thrive.
The Living Hours accreditation builds on the foundations of the Living Wage, ensuring that everyone has the secure working hours they need to thrive.
Almost 300 employers now provide workers with:
- 4 weeks’ notice for shifts,
- a contract that accurately reflects the hours they work and
- a guaranteed minimum of at least 16 hours a week for those who want it.
A guaranteed minimum of at least 16 hours a week, is the aspect of Living Hours the Living Wage Foundation gets the most questions on.
Why 16 hours’ work rather than, say, 12 or 18? Guaranteed minimum hours is also one of the key differences between the Living Hours scheme and the new legal requirements bring brought in by the Employment Rights Act.
A robust methodology
In their blog post they explain why the Living Hours standard asks employers to offer a guaranteed minimum of 16 hours’ work a week to all who want it.
The Living Hours standard was originally developed over an 18-month consultation period starting in 2017, during which we heard from over 700 low paid workers as well as employers, labour market experts, campaigners and trade unions.
Key feedback pointed out that four weeks’ notice for shifts aligns with most bills and rent, and is the minimum needed for employees to financially plan and manage a monthly budget.
It was agreed that contracts which accurately reflect the hours people regularly work are essential in providing a stable income which you can rely on month to month.
And 16 was repeatedly cited as the minimum number of hours required to meet workers’ needs for greater security and flexibility – as well as the needs of businesses – and made sense with Universal Credit rules at the time. Many low paid workers, especially those in fluctuating work, also receive Universal Credit. In fact, 32% of the people on Universal Credit were in employment in December 2025. It is therefore important to consider how different numbers of hours interact with the Universal Credit system.
In 2025, the foundation reviewed the evidence to make sure the requirement to provide 16 hours still reflects the needs of workers and accounts for recent changes to the Universal Credit system.
16 hours and Universal Credit
As part of the evidence review, the foundation commissioned research from Care Full into how the number of hours someone works interacts with the Universal Credit (UC) system. This research confirmed that 16 hours remains the optimal number for the Living Hours standard, for a number of reasons.
At 16 hours a week, all workers paid the real Living Wage earn enough to lift the benefit cap, which can mean a huge increase in income.
The benefit cap is a limit placed on the amount of benefit income that a household can receive across all benefit types; beyond this point any benefits for which you might otherwise be eligible are withheld. It is set at different levels for different household types. Because the UC system is designed to encourage individuals to take on more and higher paid work, the benefit cap can be lifted by earning enough money – and 16 hours’ work at the real Living Wage meets this income requirement.
When the cap is lifted, all withheld benefit income is restored. This can have a huge impact on how much income a household is entitled to.
At 16 hours a week, most household types overcome the Administrative Earnings Threshold, which means no compulsory work requirements at the Job Centre.
Individuals on low income are subjected to work requirements, which include regular meetings with a work coach and looking for more or higher paid work. For most adults, this is an expectation of 30-35 hours of work-related activity. If you fail to keep up with these work requirements, you can face sanctions – meaning your UC payments will be temporarily reduced.
16 hours’ work at the real Living Wage means that most household types earn enough to overcome the Administrative Earnings Threshold – the level of income below which you are subjected to these work requirements. Being released from work requirements and the threat of sanctions can have a big positive impact on wellbeing.
At 16 hours a week, parents earning the real Living Wage qualify for 30 hours of free childcare.
16 hours’ work at the real Living Wage means that parents earn enough to become eligible for 30 hours of free childcare, making a huge difference to family life.
A two-adult, single income household with two children earning the London Living Wage would bring home an extra £276 a week of benefits income when working 16 hours as opposed to 14.
PAYadvice.UK 10/8/2026