More than 210,000 workers are set to receive a pay rise after the charity behind the national living wage increased the hourly rate by 30p.

The Living Wage Foundation, which sets the voluntary measure, increased it from £9.00 to £9.30 for workers outside of London.

In the capital city, where the Living Wage is £10.55, the hourly rate will increase by 20p to £10.75.

The living wage is an informal benchmark that employers can sign up to, but unlike the national minimum wage which the government set, it is not legally enforceable.

The Living Wage Foundation say they are now £1.09-an-hour higher than the statutory minimum wage of £8.21 for adults over 25, and £2.54 higher in London.

Nationally, workers paid the living wage will be £2,000 better off than those on the government minimum over the course of a year.

In London, the difference is £5,000.

About 6,000 employers have signed up to pay staff the living wage, including Crystal Palace Football Club and Newcastle University.

More than a third of companies in the FTSE 100 pay the living wage and a number of local authorities have pledged to build ‘Living Wage Cities’.

Employers  have been advised to implement the rise from today although they will have six months to do it.

Living Wage Foundation director, Katherine Chapman, said: ‘In this time of uncertainty today’s new living wage rates give a boost to hundreds of thousands of UK workers.

‘Good businesses know that the real living wage means happier, healthier and more motivated workers, and that providing workers with financial security is not only the right thing to do, but has real business benefits.’

The living wage is updated every year, calculated on the cost of living, and payable to everyone over the age of 18.

The increase was welcomed by TUC general secretary Frances O’Grady, who called on more employers to pay the living wage.

The rise comes as both main political parties compete to offer higher minimum wages.

At the Tory party conference in October, Chancellor Sajid Javid said he would increase the minimum rate for workers over the age of 25 from £8.21 to £10.50 by 2024,  and reduce the age level at which workers qualify to 21 by the same date.

As it stands, the minimum wage for workers under 25 is £7.70, compared to £8.21 for over 25s.

The shadow chancellor, John McDonnell, has pledged to introduce £10 an hour as a minimum rate immediately, which he said would rise with living costs.

The Labour minister said this would mean ‘everybody over 16 years of age will be earning comfortably more than £10.50 an hour by 2024’.

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