Mayor Boris Johnson has announced that the London Living Wage will rise from £9.15 to £9.40 per hour next year, boosting the income of thousands of workers in the capital.
The voluntary scheme, which is championed by the Living Wage Foundation, aims to ensure workers receive a high enough wage to enjoy an adequate standard of living.
Studies suggest staff paid the rate have a better opinion of their employers and that businesses enjoy higher staff retention rates.
The Mayor also announced that the number of employers participating in the scheme has grown from 429 to 724, with Oliver Bonas, Chelsea Football Club and GlaxoSmithKline all joining the scheme in the past year.
Announcing the new hourly rate Mr Johnson said: “As our economy continues to grow and employment in London increases, it is essential all hardworking Londoners receive a fair share of the proceeds of the capital’s success.
“I have long argued that those companies that can afford to pay the London Living Wage should do so because there are clear benefits for employers in increasing productivity and reducing staff turnover, while it makes a real difference to the quality of life for employees.”
Today’s revised rate is significantly higher than both the National Minimum Wage of £6.70 per hour and Chancellor George Osborne’s recently announced National Living Wage of £7.20 per hour.
Sarah Vero, Director at the Living Wage Foundation, said: “Today’s announcement of the new, increased, London Living Wage rate brings a welcome pay rise to thousands of workers across the capital.
“Londoners are well aware that living costs in the capital have been rising faster than wages, and for many staff that are paid salaries close to the national minimums, life in this amazing city can be clouded by struggling from one pay day to the next.”