The living wage rate has increased by 40p an hour from £7.85 to £8.25 as of today (2 November 2015).
The London living wage has risen by 25p an hour from £9.15 to £9.40.
The increase in the UK living wage rate, which is calculated according to the cost of living, will result in a pay rise for around 68,000 workers employed by accredited living wage organisations, as well as sub-contracted teams working on their premises.
The London living wage rate has increased by 40% since 2005. An additional 295 employers committed to paying the London rate over the last year.
The living wage is a voluntary rate recommended by the Living Wage Foundation and independently calculated according to the cost of living. It is separate from the government’s national living wage rate of £7.20, due to come into effect for staff aged 25 and over from April 2016.
Boris Johnson, mayor of London, said: “As our economy continues to grow and employment in London increases, it is essential all hardworking Londoners receive a fair share of the proceeds of the capital’s success.
“I have long argued that those companies that can afford to pay the London living wage should do so because there are clear benefits for employers in increasing productivity and reducing staff turnover, while it makes a real difference to the quality of life for employees.”
Mike Kelly, head of living wage at KPMG UK, added: ”The rise of more than 2.5% in London (£9.15 to £9.40) and 5% nationally (£7.85 to £8.25) may seem like small change to some, but for many it’ll make a huge difference to their lives, helping escape in-work poverty.
Frances O’Grady, general secretary at the Trades Union Congress (TUC), said: “It’s good news that the number of living wage employers is growing. It’s a basic standard many more employers should meet.
“But 6 million people are still scraping by on less than the living wage, despite many working for employers who could afford to pay it.”