Living Wage rate to increase by 25p

London Mayor Boris Johnson has announced the Living Wage rate in the capital is to increase 25p an hour to 8.55.

Those living outside of London will also see a 25p increase in their rate, to 7.45 an hour.

Mr Johnson said the increase, worth 4.5 million a year in total for lower-paid workers, will benefit thousands of people and help businesses become more prosperous.

Currently, the Living Wage rate in London is 8.30 an hour and for the rest of the country it stands at 7.20. The national minimum wage for adults is currently 6.19.

Speaking about the new rates at a briefing at City Hall, Mr Johnson said the Living Wage helps build a motivated and hard-working workforce who contribute to businesses in the capital. He added that people who receive the wage are also able to lift themselves out of poverty and enjoy a better standard of living.

The Living Wage has benefited an estimated 11,500 workers in London since it was introduced.

Mr Johnson said: "Despite very challenging economic times, it's clear that more employers are waking up to the huge benefits that paying the Living Wage delivers.

"We have a great range of household names on board and I want to see more coming forward."

The event at City Hall also saw a new London Living Wage logo unveiled, something the Loving Wage Foundation said it hopes will become as recognised as the Fair Trade logo.

The new logo will be used to accredit employers in the capital who pay the Living Wage.

Launched by the Citizens UK charity in 2001, the Living Wage campaign has helped lift around 45,000 people across the country out of poverty. It has won more than 200 million of improved pay for low-income workers.

An updated list of organisations that have become officially accredited Living Wage employers includes private, public and third sectors such as KPMG, Birmingham City Council and Save the Children.

Copyright Press Association 2012