The Solicitor - The FindLaw UK Life, Family and Workplace Law Blog

London Living Wage Now 35% Higher Than The National Minimum Wage

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London mayor announced a 25p increase in the paid by the Greater London Authority (GLA) this week, taking the hourly rate to £7.85.

The London Living Wage now stands at £2.05, or 35%, above the  hourly rate of £5.80. This represents an increase of 3.3% on last year's figure, and an overall increase of 17% per cent since the London Living Wage was introduced in 2005 - at £6.70 per hour - by former mayor Ken Livingstone.

What is the London Living Wage?

The London Living Wage is a set by the GLA London Living Wage Unit, which takes into account the higher living costs of London. It is defined by GLA Economics as "a wage that achieves an adequate level of warmth and shelter, a healthy palatable diet, social integration and avoidance of chronic stress for earners and their dependents."

Why is the London Living Wage so much higher than the National Minimum Wage?

In London, living costs are so high that a significant uplift in the National Minimum Wage is needed to ensure a worker does not fall into poverty. The GLA London Living Wage Unit says someone paid less than £6.80 an hour in the capital will be living in poverty, even after benefits and tax credits are taken into account.

Since its introduction in 2005, the London Living Wage has outstripped the National Minimum Wage and has more than kept pace with average earnings and prices.  Paying the London Living Wage helps to make sure that the unemployed in London are better off in work than living on benefits.

Is the London Living Wage mandatory for all workers in London?

No. The London Living Wage only applies to workers at the GLA. While many responsible employers across London have embraced it, many have not. Contact  to join the campaign to encourage more employers to sign up.

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