Extra £1.20 per hour for London Living Wage workers

Living Wage Foundation (LWF) employers include 3,500 organisations employing 130,000 people around the capital, reports Noah Vickers, Local Democracy Reporter

Fleet Street in central London with St Paul's and the City of London in the background

Over 130,000 Londoners are set to receive a 10% pay boost, as the London Living Wage rises from £11.95 to £13.15.

The benefitting workers are employed by the capital’s 3,500 organisations signed up to the Living Wage Foundation (LWF).

The foundation sets a new ‘real’ living wage every year, which is higher than the government’s National Living Wage. The latter is more commonly referred to as the minimum wage.

The LWF says its real living wage rate is a more accurate calculation of rising living costs – and it sets a special rate for London workers to reflect the capital’s higher prices. Outside London, the rate is increasing from £10.90 to £12.

The government’s National Living Wage, which applies nationwide and only to those aged 23 and over, is currently £10.42.

Mayor Sadiq Khan – who chairs the Making London a Living Wage City project – said this year’s 10% increase is “the biggest jump ever” for the LWF’s London Living Wage.

He added: “It’s vital that we also see an increase in government support, especially for small and micro businesses, for whom paying a London Living Wage can be a challenge.”

Employers signed up to the LWF include Aviva, Burberry and Ikea.

According to the foundation, there are 3.5 million workers in the UK who earn less than their real living wage rate, and 575,000 in London. Recent LWF research shows that despite inflation easing, 60% of these low-paid workers say they have used a foodbank in the past year and 39% regularly skip meals for financial reasons.

LWF director Katherine Chapman said: “During these tough economic times, it is heartening that record numbers of employers are signing up to join the Living Wage movement, protecting everyone who works for them – including cleaners – from rising prices and seeing the benefits of a more motivated and engaged workforce.

“The real living wage has never been more important, and we encourage those who can to join the 14,000 Living Wage employers across the UK who are committed to always pay a wage that covers the cost of living.”

A full-time worker earning the LWF’s new London Living Wage would earn £5,323.50 more per year than someone on the current minimum wage, and £2,145.00 more than their current pay, the foundation said.

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