Boris Johnson announces rise in London living wage

The living wage rate for workers in London is to increase by 25p an hour to £8.55, the capital's mayor has announced.

Boris Johnson said the new rate would be worth £4.5m a year for lower-paid workers.

The living wage rate outside London will also rise by 25p to £7.45, benefiting thousands of workers.

The current rates are £8.30 an hour in London and £7.20 in the rest of the country, compared with the national minimum wage of £6.19 for adults.

Johnson said: "By building motivated, dedicated workforces, the living wage helps businesses to boost the bottom line and ensures that hard-working people who contribute to London's success can enjoy a decent standard of living."

Johnson announced the new rate at a briefing in City Hall, attended by local authorities, charities and employers who pay workers in London the living wage.

"Despite very challenging economic times, it's clear that more employers are waking up to the huge benefits that paying the living wage delivers," he said.

"We have a great range of household names on board and I want to see more coming forward."

Since the living wage was introduced in 2005, an estimated 11,500 workers have benefited.

A newly designed trademark that recognises and accredits employers who pay the London living wage was published on Monday.

The Living Wage Foundation said it hoped the mark would become as recognisable as the Fair Trade logo.