'London living wage' workers to see 10% pay rise

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File image showing a large crowd of people commuting to work in LondonImage source, Getty Images
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About 3,500 employers in the capital are currently signed up to the 'London living wage' scheme

More than 130,000 Londoners will see a 10% pay rise as the 'London living wage' increases to £13.15 an hour.

The special wage, created by the charity Living Wage Foundation, is based on independent calculations of what people need to afford their cost of living.

About 3,500 employers in the capital are currently signed up to the scheme.

The figure is separate to that of the National Living Wage, which is the same across the UK.

The announcement follows research by the foundation which highlights there are roughly 575,000 low-paid workers in London, with its recent survey suggesting 60% have used a foodbank in the past year and 39% regularly skip meals for financial reasons.

Employers signed up to the scheme now have until 1 May 2024 to implement the increase.

According to the charity's calculations, a full-time worker earning the new London living wage would earn more than £5,323 extra across the year compared to someone on the current National Living Wage.

'Makes a difference'

Workers at London Stadium in Stratford, east London, are among those to benefit from the changes.

"It's good news for me because it not only allows me to meet my basic needs, such as grocery bills and helping out with the rent, but allows me to maintain a decent standard of living," Mohammed Alihamjaj said.

Daisy Blondell said the rise means "that I know I can go home and spend the little bit of extra money that we get on something that's not basic needs or necessities".

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Daisy Blondell said while she wishes the rise was "higher", she is looking forward to using the extra money she earns

Another worker, Dylan Barrett-Chambers, said he appreciated the increase as "it's hard to get paid and actually live off what you do".

"Now that I can earn a bit more I can start investing more money," he added.

Kristina Maculska, who works as a logistics administrator for the catering company at the stadium, said the pay rise would have a "positive impact on my motivation and productivity at work" and it would help her "feel secure about tomorrow".

"The rate rise makes a real difference to me and my family especially when the cost of living is so high, particularly in London," she added.

The Mayor of London, Sadiq Khan, said: "I am proud that London Living Wage has risen by 40% since I was elected in 2016, and this year's 10% increase is the biggest jump ever."

Katherine Chapman, director of the Living Wage Foundation, said: "As inflation eases, we cannot forget that low-paid workers remain at the sharp end of the cost-of-living crisis.

"Low-paid workers continue to struggle with stubbornly high prices because they spend a larger share of their budget on food and energy."

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