Almost half a million people working for more than 16,000 real Living Wage Employers throughout the country are set to benefit from the increase.

Katherine Chapman, executive director of the Living Wage Foundation, said: ‘We all need a wage that covers life's essentials, and the real Living Wage is the only UK wage rate independently calculated based solely on what is needed to cover rising living costs. The new rates announced today will make a massive difference to workers and their families, helping them to better cope with the costs of rent, bills, food and other essentials, and to live with stability and security.

‘It remains a tough time for low-paid workers, with 4.5 million people still earning less than the real Living Wage and struggling to escape the grip of in-work poverty. That's why we encourage as many employers as possible to do the right thing and commit to paying a wage that reflects the real cost of living.'

In response, Unison general secretary Christina McAnea, said: ‘This sets a clear benchmark for the rate of pay needed to keep workers out of poverty. Low-paid staff working for fair employers are the ones who'll see the benefits of this rise. But for most workers in public services, it's the government's responsibility to make sure they're on a decent rate.

‘Workers can't give their all for the public if they're unable to meet the bills and feed their families. Thousands of NHS staff in particular will see their pay fall even further behind the real living wage rate. That risks the health service losing many of those on the lowest pay bands, such as porters and cleaners, to supermarkets and others willing to match the hourly rate.

‘Ministers have to recognise this, ditch the discredited NHS pay review body system and work with unions to put it right.'

There are now more than 15,000 Living Wage Employers, which includes around 80 accredited NHS organisations, including more than 20 accredited trusts and health boards.