The UK “living wage” has been raised by 20p to £7.85 an hour.

The hourly rate, based on the amount deemed necessary to cover basic living costs, is a voluntary rate which has been adopted by over 1,000 employers UK-wide.

This means 35,000 workers are now paid 21% more than the compulsory UK minimum wage of £6.50, as set by the government.

The Living Wage Project is the organisation which set the wage, and said the number of companies abiding by the rate had more than doubled in the past year.

Despite this, a report by consultancy firm KPMG said 22% of the working population earn less than the 2013 Living Wage - which was set at £7.65 an hour.

It said more than five million people were paid below that rate, and that women were more likely to earn less than men.