From today, the wage of nearly half a million UK workers will increase by 10 percent.
Workers will now expect to receive £12 an hour outside London - a rise of £1.10 - and £13.15 an hour in the capital - a £1.20 increase.
Living Wage Foundation director Katherine Chapman said: “As inflation eases, we cannot forget that low-paid workers remain at the sharp end of the cost-of-living crisis.
“Low-paid workers continue to struggle with stubbornly high prices because they spend a larger share of their budget on food and energy.
“These new rates are a lifeline for the 460,000 workers who will get a pay rise.”
Unison general secretary Christina McAnea added: “This is good news for hundreds of thousands of low-paid workers whose employers do the right thing. That’s pay them a decent wage.”
The change applies to employers who have signed up to the voluntary Real Living Wage scheme - set up by the Living Wage Foundation charity - and choose to pay a rate that is higher than the government-set minimum wage.
The voluntary rate also applies to everyone over the age of 18 and compares to the statutory National Living Wage for over-23s of £10.42 an hour.
This means that a full-time worker earning the new Real Living Wage will earn £3,081 a year more than someone on the current government minimum.
For those in London, this could mean an additional £5,323, the foundation says.
This comes after more than two in five low-paid workers say they regularly use a food bank and almost as many report falling behind on household bills.
The Unison general secretary explained: “But many more providing essential public services will miss out. These employees include care workers, who’re often on poverty pay, in a sector already struggling to fill record vacancies.
“Today’s increase means thousands of workers employed by the NHS on the lowest pay bands - like porters, cleaners, domestics and security staff - will be significantly short of the new rate.
“The Government must follow suit and boost the minimum wage so millions are better able to weather the cost-of-living pressures causing such deep financial pain.”
Jo Mcmahon, a textile worker from Stockport, is among the hundreds of thousands of people who will benefit from the change.
She works for school uniform manufacturer One & All, who pays its workers at the higher 'Real Living Wage' rate.
"It means I've got money I can put away each month," she said. "It's just made such a difference."
"If the washing machine breaks, I've got the money for that. If we want a nice, big holiday, I can book it."Featured Image Credit: Getty Stock Images