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Finance and money

London Living Wage to be extended to council contractor employees

Lambeth Council has signed a pledge that will see the London Living Wage paid to all contract workers in addition to the staff it directly employs. By making this commitment, the council will be awarded a full accredited licence as a Living Wage Employer from Monday (Nov 5).

The London Living Wage, currently set at a minimum £8.31 an hour, outstrips the £6.19 an hour National Minimum Wage, and is already awarded to all council staff. London Mayor Boris Johnson will announce the new London Living Wage rate for the next 12-months at City Hall on Monday (Nov 5) morning.

Lambeth agreed to sign up for London Living Wage accreditation at its Cabinet meeting on October 22 which means it is now a council policy and new contracts will have to include the LLW as part of any tender.

Cllr Steve Reed, Leader of Lambeth Council, said: “It is a matter of social justice to tackle low pay – made more important in a time of austerity and cuts to the public sector. Lambeth Council has been paying the London Living Wage to all staff that it directly employs since 2006. Signing up for this voluntary accreditation highlights our determination to make sure people employed by contractors on our behalf and in schools get the same benefit.”

The UK Living Wage Campaign, which includes the London Living Wage, was launched by members of London Citizens in 2001 and now the capital’s pay rate is set annually by the Greater London Authority.

Tom Chigbo, Lambeth Borough Organiser for London Citizens, said: “London Citizens is delighted that Lambeth Council has become a fully accredited Living Wage Employer.

“We congratulate Cllr Reed and Lambeth Council for their leadership. We look forward to working with them to spread the living wage to other major employers, so that all who work in Lambeth can earn enough to provide their families with the essentials of life.

“Paying the living wage is good for families, good for business and good for society.”

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