Wed, 1 Jun 2011

London living wage increases

The Greater London Authority has announced the largest increase to the London Living Wage since its introduction in 2005.

Some 3,000 Londoners earn the new wage of £8.30 per hour – a 5.7% increase on last year’s rate of £7.85.

The Living Wage Campaign, launched in 2001 by London Citizens, wants firms to recompense employees such as cleaners with a higher salary than the national minimum wage, to better reflect the cost of living.

The rise was announced last month by London’s Mayor Boris Johnson at the campaign’s 10th anniversary celebrations.

Johnson said: ‘Paying the London Living Wage is not only morally right, with the potential to massively reduce child poverty in London, but also makes good business sense. I believe that paying decent wages reduces staff turnover and produces a more motivated and productive workforce.’

Companies that have signed up to the scheme include Barclays and HSBC. Tesco is the campaign’s next target.