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The Living Wage

By May 4, 2011News

It’s been a bumper week here at Boriswatch HQ. Not only did we get to catch a tiny glimpse of Pippa Middleton’s taut bu[Er, Snip – Boriswatch Taste and Decency Editor] at the Royal Wedding, but we’ve all had a wee payrise.

Thanks to Boris, the London Living Wage has been raised to £8.30 an hour, 40 per cent more than the current minimum wage of £5.93. The increase of 45p is the highest since it was introduced back in 2005 and is, according to the Financial Times, ‘a sign of the increasing cost of living in the capital, pushed up by the high level of inflation.’

In order to take London’s lowest paid workers above the poverty line, the seventh annual London living wage report, published today by GLA Economics, concludes that an hourly wage 22 per cent above the national minimum is needed. Currently, one in six London workers are paid below the ‘living wage’.

Whilst over 100 companies now pay the London living wage as their minimum rate, the Mayor is keen to persuade more businesses to pledge to pay the higher level. Boris said: “It really is a win-win for employers, as paying a fair wage fosters a loyal and motivated workforce while at the same time continues to help pull many Londoners out of poverty and boost the capital’s economy.�

Richard Reid, London chairman of KPMG, the accountants, said: “We have been paying the living wage since 2006 and have found that it is not just the fair thing to do, but also makes good business sense. Since its introduction, staff turnover has reduced and productivity has increased as attitudes are more flexible and positive.�

Lovely.  We’re off to buy a new flat in Hampstead with the extra dosh.

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