Living Wage New Zealand convener, Annie Newman said for many low wage workers, the boost in pay can't come soon enough.
The increase takes the voluntary United Kingdom living wage to £3.15 more than the mandatory minimum wage for 18- to 20-year-olds.
The report revealed that three in five (59%) who earned below the RLW had experienced a sharp rise in living costs, whereas almost two times as many (17%) noticed a decline in pay compared to those who experienced an increase (9%).
Dr Wanda Wyporska, the executive director of The Equality Trust, said: "It's incredible to see so numerous UK's largest businesses refuse to pay their staff a living wage".
Unlike the minimum wage, the "real" living wage is updated each year and calculated based on the basic cost of living in the UK.
The wages are worked out by the Resolution Foundation think tank and overseen by the Living Wage Commission.
The Living Wage Foundation says the 2017 increases are due to higher inflation affecting the "basket" of goods and services that underpin the rates, such as rent and transport costs.More news: Trump Plans to See Putin in Asia Amid Scrutiny of Campaign Ties
KPMG UK director Andy Bagnall said more work had to be done to end in-work poverty.
Living wage advocates will gather at Parliament today to congratulate the new Government.
Industry figures revealed this summer that the chain's increasing popularity showed no sign of slowing as Lidl overtook Waitrose to become the seventh-largest supermarket in the UK.
The wage rise comes into effect from today, but employers will have their own "phase in period" for the change, according to the Living Wage Foundation. It stands at £7.50 an hour.
The Mayor of London, Sadiq Khan, said: "I pledged to ensure the London Living Wage rises to beyond £10 and I am delighted that has been achieved". "London is one of the most dynamic and prosperous economies in the world, but unfortunately this prosperity isn't shared by all Londoners".
"I want to make sure that no one who goes to work every day should have to endure the indignity of poverty".