London Living Wage rises to £9.40 per hour

By Sophie Witts contact

- Last updated on GMT

London Living Wage rises to £9.40 per hour

Related tags: Living wage, Minimum wage

The London Living Wage will rise to £9.40 per hour from next year, Boris Johnson has announced.

The Mayor said the 25p increase would allow hardworking Londoners to receive a ‘fair share’ of the capital’s success.

It will see staff at 724 businesses across the city paid well above the Government’s National Living Wage (NLW) of £7.20 per hour, which comes in to force next April.

Speaking at an Oliver Bonas store in London this morning, Johnson said he was ‘delighted’ that the new rate would see over 30,000 workers ‘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,” he said.
“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.”

The Living Wage Foundation also announced that the voluntary rate outside of London would rise 40p to £8.25 per hour, with accredited employers making the changes within six months.

Sarah Vero, director at the Living Wage Foundation, said: “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.”

The Mayor has previously called on hospitality businesses to adopt the Living Wage,  and told this year’s British Hospitality Association (BHA) summit​ that the rise could be ‘made to work’ for employers.

However, the issue of higher pay remains divisive in the industry.

While employers including Starbucks, Five Guys and Paul have announced plans to introduce the NLW ahead of next April, Wetherspoon boss Tim Martin has slammed the plans as likely to increase pub closures in poorer areas.

There are now over 2,000 businesses signed up to the voluntary rate nationwide, double the number accredited in November 2014.

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