Page last updated at 12:45 GMT, Monday, 28 July 2008 13:45 UK

Living Wage to meet rising costs

A demonstrator protesting against working conditions for contract cleaners on the London Underground hands a flyer to a commuter at St. James Park station
Tube cleaners will be paid the Living Wage from next month

London bosses are being urged to raise the minimum level of pay to 7.45 per hour to help tackle "obscene levels of poverty and depravation".

Mayor Boris Johnson said he had raised the London Living Wage by 25p an hour to meet the increasing cost of living.

He said he expected the new rate to be the basic standard for all employers.

From next month Tube cleaners will be paid the new rate after a series of protests called on their employers to pay them a fair wage.

Speaking on Monday, Mr Johnson said he was stepping up the campaign to persuade London employers to ensure all staff are paid at least 7.45 per hour.

"This is not only morally right but makes good business sense, contributing to better recruitment and retention of staff, higher productivity, and a more loyal workforce with high morale," he said.

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