The Living Wage Commission has said that the Government should make it a priority to roll out the ‘living wage’ to a million more low-paid workers by 2020.

The commission said that the move was imperative to ensure that low paid workers get enough money to “enjoy a basic, but socially acceptable standard of living" as opposed to getting the minimum wage, which is not based on cost of living.

The commission’s chairman, Archbishop of York, Dr John Sentamu, has recommended a series of moves to tackle low pay in order to tackle the problem that “for the first time, the majority of people in poverty in the UK are working".

Dr Adam Marshall, director of policy and external affairs at the British Chambers of Commerce, said many firms were returning to economic growth, looking at raising pay levels "after a tough period for business".

He said firms should be supported and encouraged to help pay their staff the living wage, but without "facing compulsion or regulation, which could lead to job losses and difficulties - particularly for younger people entering the labour market".

He added: "Some businesses simply cannot afford to pay a living wage just yet - which is why the commission rejected a compulsory living wage.”

Dr Sentamu said: "Working and still living in poverty is a national scandal. For the first time, the majority of people in poverty in the UK are now in working households. "If the government now commits to making this hope a reality, we can take a major step towards ending the strain on all of our consciences. Low wages equals living in poverty."