London’s mayor Ken Livingstone puts the living wage in London up to £7.20 per hour

Mayor of London Ken Livingstone has announced a new £7.20 living wage rate for the capital following a report by the Living Wage Unit.

The new rate is a rise of 15p from last year’s rate.

The report found that anyone earning less than £6.25 an hour is at or below the poverty level in London – even after taking into account tax credits and benefits. This is significantly above the National Minimum Wage level of £5.35, largely because of the high cost of housing in London.

Livingstone said: “The London living wage is vital to ensure the capital retains a skilled, committed workforce and this applies to those who provide all the essential services – without which London would grind to a halt.

“Since the establishment of a recognised London living wage, employers and unions are increasingly using it in negotiations and setting wage rates.”

Steve Hart, regional secretary at the Transport and General Workers’ Union, said: “The creation of the London living wage was a bold move by the mayor and it is the minimum that responsible employers should be paying to keep their workforce out of poverty.

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“It’s now about getting it in practice throughout the public and private sectors,” Hart said.