This article reports the results of a case study on the introduction of the living wage. Three employers in the City of York became living wage employers. Using data derived from a sample survey of their employees and qualitative interviews, this article explores what impact the receipt of the living wage had on poverty and deprivation. It found that not all living wage employees were income poor or deprived, although those on living wage rates were more likely to be poor and deprived than those on even higher wages. The more important determinant of the employees’ living standards was the household they lived in, and there were a high proportion of living wage employees living in multi-unit households. Also important were the number of earners in the household and the hours worked by the living wage employee. Lone parent families and single people appeared to be most vulnerable to poverty and deprivation. In addition, whether the employee took up their entitlement to in-work benefits was critical and, using benefit checks by welfare rights experts, it was found that some were not.