Living Wage going up to £9.40 in London

The Living Wage in London is going up to £9.40 an hour – well above the rate being brought in by the Government next year.

Mayor Boris Johnson announced a 25p rise to the voluntary rate in London and urged employers to pay it.

Outside of the capital, the Living Wage is increasing by 40p an hour to £8.25.

The Living Wage was set up by the Living Wage Foundation, and is calculated according to the cost of living in the UK and updated annually.

The new rates are well above the national minimum wage of £6.70 an hour, and the planned new National Living Wage of £7.20 for workers aged 25.

The number of firms paying the Living Wage in London has increased from 429 to 724 in the past year.

Mr Johnson said that paying the voluntary rate was a "point of pride".

Announcing the new rate in an Oliver Bonas store he said: "It is a mark of esteem companies have for their staff.

"As our economy continues to grow and employment in London increases it is essential all hard-working Londoners receive a fair share of the proceeds of the capital's success."

Paul Kenny, general secretary of trade union GMB, said the new London Living Wage proved that the rate coming in for adults next year was a "sham".

"The Chancellor is using this as a cover to take away tax credits from the lowest-paid workers in the country," he said.

Green Party leader Natalie Bennett said: "George Osborne's offer of £7.20 an hour for over 25-year-olds from next April is pitiful in comparison to this real living wage.

"With people now needing to earn £8.25 an hour to sustain a decent standard of living, it is no wonder that our current minimum wage leaves people reliant on food banks and struggling to keep a roof over their head."