The voluntary Living Wage has increased 2.4% to £8.45 an hour across the UK.
The changes announced by the Living Wage Foundation this week affect around 3,000 Living Wage accredited employers. The rate applies to workers aged 18 and over.
The Living Wage is independently calculated each year to reflect what employees and their families actually need to meet their living costs. This is based on research by the Resolution Foundation.
In London, the rate has increased 3.7% to £9.75 meaning an increase of 35p per hour.
These rates are distinct from the National Living Wage, the legal minimum introduced in April 2016 for over 25’s which was set at £7.20 per hour.
The changes come a day after a poll showed one in five workers (more than five million people), are being paid less than the Living Wage.
Employers including Ikea, Majestic Wine, National Express Bus and EDF Energy have signed up to the scheme and it has recently been announced that Everton Football Club, the British Library, MoreThan owner RSA Insurance, Curzon Cinemas and law firm DLA Piper International have now been accredited.
Katherine Chapman, director of the Living Wage Foundation, said: “It’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the Government minimum and making sure their employees earn enough to cover the cost of living.