The Mayor of London, Boris Johnson has announced on Monday (November 2) a near 3% increase in the London Living Wage and revealed 295 additional employers this year are now paying their staff the capital’s hourly rate.
The figure, which experts agree is the minimum hourly rate it's possible to live on in the capital, has increased by 25p per hour.
The announcement comes as a recent study found that o ver 1 million people working in London live in poverty .
Boris Johnson announced the increase this morning, after it was announced the figure for the rest of the country would rise from £7.85 to £8.25 per hour.
The figure is calculated by the Living Wage Foundation, who say it's the minimum required for someone working full time to have a decent standard of living.
It means from April 2016 the effective minimum wage for over 25s will be £7.20 per hour - £1.05 an hour less than the real Living Wage.
The Mayor also revealed the number of employers now paying their staff the London Living Wage has grown from 429 to 724 in the last 12 months.
Brands including Oliver Bonas, Chelsea Football Club and GlaxoSmithKline have all joined the lsit of organisations now accredited as London Living Wage employers over the last year, while last month Lidl became the first major supermarket to pay its staff the rate.
'Welcome pay rise to thousands of workers across the capital'
Boris Johnson said: “I am delighted that more than 700 employers have signed up to paying the London Living Wage and we now have tens of thousands of employees being properly rewarded for the work they do.
“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.
“I encourage businesses in the capital to follow the example of Lidl and Oliver Bonas and pay their staff the London Living Wage.”
Read more: How much do you need to earn to be a top earner in London?
Since 2005 the London Living Wage has grown by 40.3 per cent and more than 30,000 workers stretching across the capital have benefited from the increased wage since 2011.
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.
“London businesses are leading the way, with hundreds of employers voluntarily paying their people the London Living Wage.
"This independently calculated rate reflects the real cost of living in London. The difference between this rate and the new minimum wage premium for over 25s of £7.20 is stark.
"Hard working Londoners are the capital’s life blood, they need a wage that respects the contribution they make to this great city.”
'Far too many working people in London live in poverty'
Sunday November 1 marked the start of Living Wage week, an annual celebration of the Living Wage and Living Wage employers in the UK.
Sadiq Khan, Labour’s candidate for Mayor of London, commenting on the start of Living Wage Week said: “Living Wage Week is an important opportunity to recognise and celebrate the employers who do the right thing by ensuring that all of their workers earn at least enough to afford a decent standard of living.
“But we also need to shine a light on the fact that still far too many working people in London live in poverty.
“Nearly 700,000 London workers are paid less than the London Living Wage, and 1.2 million Londoners in poverty are part of a working family.
“Low pay and the housing crisis have created a perfect storm of working poverty. And alongside this, the working poor face the threat of the Government’s proposed cuts to tax credits.
“It’s clear that in-work poverty has become a shameful blight on our city, and neither the Government nor the Mayor are doing enough to turn things round.
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