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Tens of thousands of low-paid workers will receive a pay rise of around £400 a year after a rise in the Living Wage announced today (Monday 4 November).

The Living Wage rate outside London, which is calculated annually by Loughborough University’s Centre for Research in Social Policy (CRSP), will rise by 20p to £7.65. The new rate was announced by Bishop Paul Butler at a large rally in Nottingham.

The Living Wage is independently set each year, according to Loughborough University’s Minimum Income Standard, which researches what is needed for a minimum acceptable standard of living in the UK. It is updated annually and employers choose to pay the rate voluntarily. The rate is higher than the legal minimum wage which stands at £6.31 an hour for over-21s.

Donald Hirsch, Director of CRSP comments:  “The work we have done provides solid evidence for the rise in the Living Wage rate. Our research is based on what members of the public tell us in great detail a family needs to make ends meet. We look at how living costs are changing and what you need to do to keep up with those changes. Importantly, we consider what you need as a minimum to participate in society, not just to survive.”

Rhys Moore, Director of the Living Wage Foundation said: “Living Wage Week is about employers taking a lead and tackling the problem of low pay. The Living Wage has become a must have badge of honour for employers. By looking out for the Living Wage badge you can now choose to support businesses that are doing the right thing. It works just like Fairtrade and will grow even faster with consumer support.”

The charity Citizens UK has been leading the campaign on the Living Wage for over 10 years. Rabbi Miriam Berger said “Citizens UK brings together people from every part of society who work together for the common good. This is a call to action for responsible employers. We are thrilled that so many companies are already signed up, but there are many more that could pay the Living Wage. The CBI is meeting in London today and we call on them to respond positively to the challenge.”

Over 400 employers are now signed up to the campaign, up from 100 this time last year. This includes major employers such as Legal and General, KPMG, Barclays, Oxfam, Pearson, the National Portrait Gallery, First Transpennine Express as well as many smaller businesses, charities and town halls.  Together they employ over 250,000 workers and also commit to roll out the Living Wage in their supply chain.

The Living Wage rate for workers in London has also been revised, increasing by 25p an hour to £8.80. The London rate was announced by Mayor of London, Boris Johnson at an event at Great Ormond Street Hospital.

Boris Johnson said: “More and more London firms are recognising the benefits of fair remuneration for all of their workforce. Paying the London Living Wage ensures hard working Londoners are helped to make ends meet, providing a boost not only for their personal quality of life but delivering indisputable economic dividends to employers too. This in turn is good for London’s productivity and growth. It is extremely heartening to see major new companies signed up this year but we need more converts. I hope we can spur on even more organisations to do the right thing.

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