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More on the London Living Wage

About the London Living Wage

Although work is the most important route out of poverty, more and more poor households in the capital include someone who is working. 15% of all full-time and 45% of all part-time workers in the capital are low-paid (one in five of London's workers).

The London living wage stipulates an hourly pay rate set above the National Minimum Wage (currently set by the Greater London Authority at £8.30 an hour) and includes entitlements such as annual leave and sick leave, to ensure a decent standard of living. It is not mandatory, like the National Minimum Wage, but more than 100 employers in the capital are now paying it, including Barclays, Westfield, the London School of Economics and Transport for London.

The campaign is strongly supported by both the previous and current Mayor of London. Mayor Johnson stated: "Paying the London Living Wage is not only morally right, but makes good business sense too. What may appear to be an unaffordable cost in a highly competitive market should more often be viewed as a sound investment decision. I believe that paying decent wages reduces staff turnover and produces a more motivated and productive workforce."

We agree. Not only are we a Living Wage employer - and encourage the groups we fund to pay a Living Wage - but we have also funded work related to this campaign since its inception. The campaign has achieved a great deal to date - it is estimated by researchers at Queen Mary, University of London that since the campaign began, it has provided an additional £20 million into the pockets of low-paid workers across London.

Achievements

We are pleased that the work is now seeing some considerable gains. In the public sector, seven local authorities including Tower Hamlets, Lewisham, Hackney and Lambeth have committed to a living wage. In higher education, eight colleges and universities have committed to a living wage with five, including the London School of Economics, Birkbeck College and Queen Mary University of London now implementing. In the retail sector, the retail chain LUSH became the first retail champion in May 2011 and the new Living Wage Foundation was launched as part of celebrations marking ten years of the Living Wage at an event organised by London Citizens at Methodist Central Hall on 2 May 2011.

Advisory Group

The initiative is supported by an Advisory Group of representatives with an interest in the living wage. The group is a broad coalition of members drawn from a range of interested parties and includes the TUC, Unison, London Councils, GLA, Business in the Community, Stonewall, KPMG, London First, LVSC and Joseph Rowntree Foundation. Members also include key individuals from Trust for London, London Citizens, and from the research and evaluation teams.