Living wage rate increased by 20p an hour

£10 notes and £1 coins Image copyright PA

The UK voluntary living wage, promoted by the Living Wage Foundation campaign group, is to rise by 20p an hour.

The new rate is rising to £8.45 per hour, from its current £8.25. For those living in London, the rate will rise by 35p to £9.75 an hour, the city's Mayor, Sadiq Khan, announced.

Nearly 3,000 businesses are signed up to the scheme, including Ikea and EDF.

The scheme is separate from the government's National Living Wage, introduced in April this year.

The government's figure is set at £7.20 an hour for workers aged 25 and above.

"Today's new living wage rates bring a welcome pay rise to thousands of workers across the UK," said Katherine Chapman, director of the Living Wage Foundation.

"One in five people earn less than the wage they need to get by. That's why 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."

On Monday, a number of new companies announced their commitment to pay the living wage, including RSA Insurance, the British Library, Curzon Cinemas and Everton football club.

The level of the voluntary living wage is calculated annually by the Resolution Foundation, a not-for-profit research and policy organisation.

It is overseen by the Living Wage Commission, which is appointed by the Living Wage Foundation and includes representation from employers, trade unions, civil society and independent experts.

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