More than 300,000 workers are set to receive a pay rise after higher rates were announced for the Real Living Wage, a voluntary rate paid by thousands of employers.
The new hourly rate will be £9.90 across the UK, except in London where it rises to £11.05 - increases of 20p and 40p respectively.
The Living Wage Foundation, which sets the rates, said almost 9,000 employers across the nation now pay the wage, which is higher than the statutory National Living Wage of £8.91 an hour for adults, which will rise to £9.50 in April. Workers paid the higher rate have benefitted from more than £1.6 billion in extra wages since the campaign launched 20 years ago.
The foundation said one in 13 people now work for an accredited Living Wage employer.
The foundation announced that new employers signing up to pay the higher rates include construction firms Taylor Wimpey and Persimmon Homes, Fujitsu, food delivery company Getir, and Capita.
Over 3,000 employers have been accredited with the Living Wage Foundation since the start of the pandemic in March 2020, however, the foundation said 4.8 million jobs still pay less than the Real Living Wage.
Katherine Chapman, Living Wage Foundation Director, said: "With living costs rising so rapidly, today's new Living Wage rates will provide hundreds of thousands of workers and their families with greater security and stability.
"For the past 20 years, the Living Wage movement has shaped the debate on low pay, showing what is possible when responsible employers step up and provide a wage that delivers dignity.
"Despite this, there are still millions trapped in working poverty, struggling to keep their heads above water and these are people working in jobs that kept society going during the pandemic like social care workers and cleaners."
TUC General Secretary Frances O'Grady said the report showed that low pay was "endemic", with millions of workers in jobs that don't pay the bills or put food on the table.
She added: "After 11 years of Conservative Government, real wages are only just getting back to their 2009 level, and the Budget revealed we face another half decade of wage stagnation.
"With Britain in the middle of a cost-of-living crunch, it's time for the Government to act.
"Ministers must start by increasing the minimum wage to £10 immediately, banning zero hours contracts and giving trade unions greater access to workplaces to negotiate improved pay and conditions."
A UK Government spokesperson said: "The Government is determined to make work pay, having recently announced a significant rise in the National Living Wage from April 2022, to £9.50 an hour - the biggest increase since its introduction. We have also committed to further increases to the National Living Wage, to reach two thirds of average earnings by 2024.
"The minimum wages are a legal minimum, and we commend employers who are able to pay more, when they can afford to do so.
"We are committed to going even further to support workers, pushing ahead with plans to include a new right for all workers to request a more predictable contract from their employers, giving individuals the security they need."
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