More than 100,000 Londoners will receive a pay rise as the London Living Wage increases to £13.85.
This pay rise will make a huge difference to hundreds of thousands of workers and their families over the coming months. The real Living Wage for the rest of the UK has risen by 5% to £12.60.
What is the real Living Wage?
The real Living Wage is the only wage rate based on the actual cost of living. To reflect the higher costs of living in the capital, there is a separate London Living Wage and real Living Wage in the rest of the UK.
It's a voluntary wage rate. More than 15,000 employers across the UK are signed up to pay their employees at least the Living Wage - demonstrating their commitment to treat their employees well.
The real Living Wage is different from the government's National Living Wage, which I the legal minimum wage rate for over-21s and is currently £11.44 an hour. A full-time worker on the new London Living Wage would now earn £4,700 more per year than someone on the National Living Wage.
Employers signed up to pay the real Living Wage report significant business benefits including better staff retention and recruitment and a more motivated, engaged and productive workforce.
The London Living Wage campaign
We've been funding work to make London a Living Wage City since 2001. Find out more about the campaign here.
Paying everyone at least the real Living Wage is the single most important thing employers can do to tackle poverty. It helps workers to live rather than just survive, and says to the world that you want to treat your employees fairly and do business the right way.
Manny Hothi, chief executive of Trust for London