The Impact and Benefits of Becoming a Living Hours Employer

Most conversations about fair employment start with pay – and pay does matter. But according to research, for around 6.1 million workers in the UK, the more pressing difficulty is often the unpredictability of their hours. Not knowing how much work is coming next week makes it genuinely hard to budget, plan childcare, or cover fixed costs, even when the hourly rate itself is reasonable.

The Living Hours accreditation, awarded by the Living Wage Foundation, is a response to that. It sets a clear standard for how predictably and securely people work: guaranteed minimum hours, meaningful notice of schedule changes, full pay when shifts are cancelled at short notice, and contracts that actually reflect the hours someone regularly works. It’s a voluntary commitment, and a relatively uncommon one: around 281 employers across the UK hold it as of early 2026.

1st Formations is among them. This article explains what Living Hours accreditation entails, why we’ve pursued it, and the benefits for employees and employers alike.

What is the Living Hours accreditation?

Living Hours is a standard developed and administered by the Living Wage Foundation. Whereas the Foundation’s real Living Wage accreditation focuses on how much people are paid, Living Hours focuses on how reliably and predictably they can count on their work.

To hold the accreditation, employers must meet four requirements for eligible workers:

• A guaranteed minimum of 16 hours of work per week, for all who want it
• At least four weeks’ advance notice of shifts or schedule changes
• Full payment for any shift cancelled within that four-week notice window
• A contract that accurately reflects the hours they regularly work

The standard applies to directly employed staff, with third-party contracted workers able to be brought onto it on a rolling basis.

How does Living Hours differ from the real Living Wage?

The two accreditations are complementary but separate. The real Living Wage is an hourly pay standard, set annually by the Living Wage Foundation based on what it actually costs to live. The current rates for 2025-26 are £13.45 per hour across the UK and £14.80 per hour in London. Living Hours addresses a different dimension: namely, whether workers have enough hours, enough notice, and a contract that reflects what they actually do. Many employers (including 1st Formations) hold both.

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Why secure hours matter

Low pay and irregular hours often go hand in hand. The Living Hours accreditation, awarded by the Living Wage Foundation, was developed with that in mind. Research by the Foundation shows that millions of UK workers struggle not just with inadequate wages, but with unpredictable rotas that make budgeting and planning genuinely difficult – even when the hourly rate has improved.

The problem also falls harder on some groups than others. Living Wage Foundation data shows that nearly half of minority ethnic workers receive less than a week’s notice of shifts, compared with 28% of white workers. Among workers aged 18-24, more than half receive less than a week’s notice. For disabled workers, the figures are similarly stark. Living Hours sets a floor that applies regardless of contract type.

The Employment Rights Act 2025 has introduced some new protections for workers with unpredictable hours – the government estimates around 2.1 million workers may benefit – with changes expected to come into force in 2027. Living Hours goes further, though, and for businesses that want to lead on employment standards rather than simply meet the legal minimum, it offers a clear benchmark to work towards.

How 1st Formations approaches fair and secure work

1st Formations has been a real Living Wage Employer for several years. Our Living Hours accreditation is the natural extension of that commitment – a recognition that fair employment means looking at the full picture of how people work, not just the hourly rate.

Keziah Cowan, Associate Director at 1st Formations, explains:

At 1st Formations, we believe in fair pay, equal treatment, and empowering everyone to thrive. Having been Living Wage accredited for many years, we are proud to extend our commitment with our Living Hours accreditation. This accreditation recognises that all our team members, regardless of contract type, are fairly compensated, have contracts that accurately reflect their working hours, and receive the security they need to support themselves and flourish.

Alongside Living Hours and real Living Wage accreditations, 1st Formations holds B Corp certification. This standard requires verified performance across governance, workers, community, environment, and customers, with reassessment every three years.

The benefits of the Living Hours accreditation

For employees: job security and predictability

The practical effect of these commitments is seen in the decisions people make every day. A guaranteed 16-hour work week helps you manage costs confidently. And knowing your next four weeks of shifts in advance means you can book medical appointments, arrange school pick-ups, or plan around travel.

None of these things is unreasonable to want from an employer. And yet, for many workers on variable contracts, they’re genuinely hard to count on. For employees who’ve experienced last-minute cancellations, hours that fall short of their contract, or rotas released days in advance, the difference is tangible.

Unstable scheduling also carries a direct financial cost. Living Wage Foundation research found that 27% of workers with varying hours have had to pay higher travel costs because of short-notice call-ins, and 17% have faced higher childcare bills as a result. For nearly a fifth of those affected, those extra costs add up to more than £600 a year – a figure that has a real impact on household budgets.

For employers: loyalty, retention, and hiring appeal

There’s a strong employer-side case here, too. Over 16,000 businesses across the UK are accredited as real Living Wage Employers, and for good reason. The accreditation comes with public recognition through the Living Wage Foundation’s employer listings and mark, which signals to both current and prospective employees that the organisation takes pay and working conditions seriously.

For Living Hours specifically, the pool is still relatively small, with around 281 accredited employers nationwide. For businesses operating in competitive labour markets, it can be a meaningful differentiator when attracting talent.

There are also internal benefits worth considering. Employers that offer predictable hours and proper notice tend to experience fewer last-minute absences, less friction around rota changes, and stronger retention. When people can rely on their schedules, they’re better placed to show up consistently and perform well.

Insights from accreditation surveys

The wider data on Living Wage accreditation supports these findings. According to the Living Wage Foundation, 94% of accredited employers said they had benefited from accreditation; 87% said it improved their reputation; 62% said it helped with recruitment; and 60% said it improved staff retention.

How to become a Living Hours Employer

The accreditation process is more straightforward than it might initially seem. The Living Wage Foundation works with employers wherever they are, including those who need some support with implementation before they’re ready to commit.

The steps are:

1. Make an enquiry with the Living Wage Foundation.
2. Receive an online licence form and implementation guidance.
3. Confirm eligibility and compliance with the Living Hours criteria.
4. Submit the signed licence.

The Foundation also runs information sessions covering how the standard was developed, the accreditation criteria, and how the process works in practice. These are useful starting points for businesses that want to understand what’s involved before moving forward.

Living Hours and responsible business

For businesses with ESG commitments or responsible business strategies, Living Hours carries additional weight. The Living Wage Foundation positions accreditation as a signal that an employer is among the UK’s leading organisations on decent work – and that’s a signal that increasingly matters to investors, clients, and partners.

The Living Wage Foundation’s research found that 85% of investors view investment in employees as an important factor in their decision-making, with 62% specifically citing Living Wage accreditation. For businesses where employment standards are part of how they’re externally assessed (such as through tenders, certifications, or investor due diligence), independently verified accreditation provides concrete, credible evidence of their standing.

Taking the next step

The terms on which people work – including the number of hours, the amount of notice they receive ahead of changes, and the contracts they depend on – shape their ability to manage their lives in ways that extend well beyond the workplace. For businesses that take that seriously, Living Hours accreditation offers a concrete, externally verified way to demonstrate it.

If you’re a business owner thinking about your own employment practices, head to the Living Wage Foundation’s website. It’s the best place to explore what Living Hours accreditation involves and whether it’s the right next step. And if you’re in the early stages of building a business, explore how 1st Formations can make it easier.