Charles Cotton, senior reward adviser for the CIPD, the professional body for HR and people development, said:

"This is a significant increase to the real Living Wage and shows the importance of fair pay and good work for UK workers.

"While the increase in the real Living Wage will be welcome by thousands of low-wage workers, it may not be enough to improve financial conditions for some of the lowest paid employees in the current cost of living crisis.

"Employers should also consider other ways they can support employees’ financial wellbeing. As well as offering enough hours for staff to have a decent standard of living, organisations should review aspects of employment such as flexible working, career progression opportunities, and financial wellbeing benefits, for example occupational sick pay or hardship loans.

"There is also the challenge of businesses being able to afford this increase, as they too are suffering from significant cost increases. The latest Government support package for businesses should relieve some of the immediate cost pressures being endured by many employers, and we would still encourage workplaces to explore how they can help low-waged workers over this difficult period.

"The most sustainable way for employers to pay more is through improved productivity. This doesn’t mean forcing staff to work harder, but smarter. Employers should review how jobs, tasks and workplaces are designed to see where improvements can be made."

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