Almost half a million people are set to receive a pay rise thanks to increases in the voluntary Real Living Wage announced today.
Rates will increase by 65p to £14.10-an-hour across the UK and by 65p to £15.45 in London.
The new rates will benefit workers at almost 17,000 employers who pay the Real Living Wage.
This year marks the 25th anniversary of the campaign for a so-called real living wage, with almost £5 billion worth of pay rises for low paid workers over that period, including almost £700 million in the last year alone.
The Living Wage Foundation, which sets the rates, said full-time workers on the Real Living Wage will receive a pay rise worth over £1,250 this year thanks to the increase.
The foundation said its analysis showed that a full-time worker earning the new, Real Living Wage would earn over £2,700-a-year more than a worker earning the current Government minimum of £12.71 for over 21-year-olds.
Emily Sawh, co-director of the Living Wage Foundation, said: “Today’s increase to the Real Living Wage will make a massive difference to hundreds of thousands of workers and their families up and down the country.
“They will be over £1,250 better off this year thanks to the rise, helping them achieve the decent standard of living they need to thrive.
“This year marks the 25th anniversary of the Living Wage campaign, which began as a hopeful idea, driven by low-paid workers in east London organising for decent pay.
“It has grown into one of the most successful campaigns of the 21st century, with nearly 17,000 employers committed to decent pay for all their workers and billions of pounds back in the pockets of those who need it most.
“Despite the Living Wage campaign’s monumental impact on wages in the UK, there are still millions of workers trapped in in-work poverty and struggling every day to make ends meet. They’re forced to skip meals, fall behind on bills and visit foodbanks.
“That’s why we urge employers to do the right thing by signing up to pay the Real Living Wage and providing workers with the decent standard of living they need to thrive.”
More than 2,000 new employers signed up to pay the Real Living Wage over the past year, including Uniqlo, the Department for Business and Trade and Coventry Building Society.
Unison general secretary Andrea Egan commented: “A real living wage of £14.10 an hour highlights the urgency of the Prime Minister getting to grips with the cost-of-living crisis.
“With essentials such as food and energy set to rise even further, millions of workers need a proper pay increase to take the pressure off.
“Staff, like those in the care sector, need urgent action on poverty pay from the Government.”