Mayor announces London Living Wage increase as thousands more benefit

31 October 2016
  • Over 1,000 London businesses to pay employees the increased London Living Wage rate of £9.75 per hour
  • Number of accredited employers paying the London Living Wage has grown from 724 to 1,033
  • The LLW has increased by 17.5 per cent over five years and more than 60,000 workers have benefitted since 2011


The Mayor of London, Sadiq Khan, today announced an increase in the London Living Wage, which has increased from £9.40 to £9.75 per hour. He also revealed that another 309 employers signed up to pay their staff the capital’s hourly rate over the last 12 months. That brings the total number of accredited businesses in London to 1,033 and means that London accounts for over one third of businesses paying the Living Wage in the United Kingdom.

Since 2011 the London Living Wage has increased by 17.5 per cent and more than 60,000 workers in the capital have benefited from the increase. Over the last year major brands including the British Library, IKEA, Majestic Wine, Lloyds TSB and London’s Borough Market have all become accredited as London Living Wage employers.

The Mayor of London, Sadiq Khan, announced the new rate for the London Living Wage at the British Library, a newly accredited London Living Wage employer, and subsequently visited Alchemy Café on Ludgate Broadway who have also signed up to pay the London Living Wage. He said:

“It’s great news that London is leading the way in paying the Living Wage and that over 1,000 businesses are now accredited and helping to make this a fairer and more equal city.  I’m glad to say we’re well on track to see it rise to over £10 an hour during my mayoralty, but we need to go further and for many more businesses and organisations to sign up. 

“Our economy continues to grow and for the first time in London’s history we now have over one million businesses based here.  It’s essential that hard-working Londoners, who keep this city going, are rewarded for their integral role in this success.

“Paying the London Living Wage is not just the right and moral thing to do, it makes good business sense too.  As many employers already accredited know, the benefits are clear - including increased productivity and reduced staff turnover.

“The London Living Wage is a fantastic campaign and I will be working to encourage more businesses across our great city to get involved.  This will not only help London become a city where it’s a badge of pride for employers to pay the London Living Wage, but help us become a city where everyone benefits from the capital’s success.”

Alchemy café opened near Blackfriars in April 2013 with three employees, which has now increased to five. Their starting wage is the London Living Wage. Joe O’Hara, Director of Alchemy, said “Alchemy is very proud to be a payer of the London Living Wage. We are as committed to paying a sustainable living wage to our team in London as we are to paying a sustainable price for the coffee we buy from our growers. We are lucky to have a dedicated, loyal and professional team – and they need to be rewarded for that with a wage that provides them with the ‘real’ cost of living in our wonderful capital.”

Katherine Chapman Director of the Living Wage Foundation said: “The high costs of living in London are widely known and today’s increase will be welcome news to thousands of hard working Londoners. Over 1000 employers in London ranging from FTSE 100 companies to small independent coffee shops are now leading the way on tackling low pay in the capital, making sure their employees earn a wage that they and their families can live on. 

“Traditionally the Mayors of London have been strong champions of the London Living Wage and it is fantastic that Sadiq Khan is continuing to help make London a Living Wage city”

Earlier this month, after discovering that subcontractors hired under the former Mayor were paid less than London Living Wage, the Mayor tasked his Deputy Mayors with ensuring that all staff working at City Hall and mayoral bodies are paid the London Living Wage, and increased the pay of TfL subcontractors hired under the former Mayor and paid less than the Living Wage. He is also working with local authorities and encouraging them to follow the excellent example set by the London Boroughs of Brent, Ealing and Greenwich who have increased accreditations by offering discounts in business rates to Living Wage employers. 


Notes to editors

∙ The London Living Wage has risen by 3.7 per cent from £9.40 to £9.75 

∙There are now 1,033 London employers accredited, up from 724 the previous year. This compares with just 27 employers who publically backed the Living Wage in 2008.

∙ Over the past year there have been new living wage employers from every sector including private sector companies in high street banking, retail and energy providers.

∙ Key sign-ups in the private sector in the past year include well-known brands such as IKEA, Lloyds TSB, EDF Energy and National Express

∙The Living Wage Foundation supports both the London and National Living Wage campaigns by providing ‘accreditation’ to those Living Wage employers who want it.

∙The accreditation process is administered by the Foundation, which is part of Citizens UK. ‘Accreditation’ entitles an employer to use the Living Wage mark. In addition accredited employers undertake to meet announced rises in the Living Wage within six months.

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