Set at £10.20 in London (£8.75 everywhere else) the living wage is based on the increasing costs of basic living (housing, food and travel).
Although the voluntary wage level is based on real living costs it is informal and is currently only supported by around 3,000 employers across the UK. Two thirds of large blue-chip companies are still not signed up.
The regular enforced by law minimum wage is £7.50 for people over 25 (£7.05 for people under 25) so for over 25's outside of London that is an extra 17 percent (or 36 percent extra in London).
Those aged under-25 and working for living wage signed-up companies will benefit the most as the minimum amount provides £1.70 per hour extra outside London (£3.15 in London).