The voluntary living wage across London has increased by 35p an hour, announced the Mayor of London, Sadiq Khan today.
The new London living wage now stands at £9.75 per hour, up from last year’s £9.40. The increase reflects the higher cost of living faced by families within the capital.
Over 300 more employers have also joined the voluntary scheme bringing the number of London living wage employers to nearly 1,000.
The UK rate has also increased by 2.4 per cent from £8.25 to £8.45. This is 17 per cent higher than the minimum wage for over 25s set by the government, which is £7.20 per hour.
Companies across the UK have signed up to the scheme, including IKEA, Majestic Wine, National Express Bus and EDF Energy.
Speaking at the British Library, Khan said, “It’s great news that London is leading the way in paying the Living Wage and that over 1,000 businesses are now accredited and helping to make this a fairer and more equal city.”
“I’m glad to say we’re well on track to see it rise to over £10 an hour during my mayoralty, but we need to further and for many more businesses and organisations to sign up.”
“Our economy continues to grow and for the first time in London’s history we now have over one million businesses based here.”
“It’s essential that hard-working Londoners, who keep this city going, are rewarded for their integral role in this success.”
“Paying the London Living Wage is not just the right and moral thing to do, it makes good business sense too.”
“As many employers already accredited know, the benefits are clear – including increased productivity and reduced staff turnover.”
Katherine Chapman, Director of the Living Wage Foundation, added, “Today’s new Living Wage rates bring a welcome pay rise to thousands of workers across the UK.”
“One in five people earn less than the wage they need to get by.”
“That’s why it’s more important than ever for leading employers to join the growing movement of businesses and organisations that are going further than the government minimum and making sure their employees earn enough to cover the cost of living.”
“As we kick off Living Wage Week today we are celebrating nearly 3,000 employers across the UK who lead the way on tackling low pay by paying the real Living Wage.”
“The sheer growth of our movement shows that the Living Wage is good for people and good for business.”