Sterling notes and coins
Media playback is unsupported on your device
Video

UK 'living wage' raised to £7.85 an hour

The UK "living wage" - an hourly rate based on the amount needed to cover the basic costs of living - has been raised by 20p to £7.85.

The voluntary wage - set by the Living Wage Foundation - is now 21% higher than the compulsory National Minimum Wage, which is currently £6.50 an hour.

The rate in London will rise from £8.80 an hour to £9.15, the mayor, Boris Johnson, announced.

The living wage has been adopted by more than 1,000 employers across the country, benefiting 35,000 workers.

Rhys Moore, a director at the Living Wage Foundation told the BBC: "Employers who sign up do it because they think it is the right thing to do."

Go to next video: Pressure continues on pay row peer