The living wage in London is set to rise by 25p taking it up to £8.55 an hour. This comes as labour was set to announce their proposal to give businesses tax breaks for paying the wage.
Mr Johnson believes the new rate could be worth as much as £4.5m per year for low paid workers employed by businesses implementing the new wage. The rate is believed to be more representative of the living costs associated with London.
Outside of London the rate will also increase by 25p to £7.45. It’s believed that around 12,000 workers benefit from the wage which was introduced in 2005 but almost 5 million workers are still paid less.
Labour party leader Ed Miliband intends to set out proposals which should give businesses tax breaks for paying their staff the living wage. The Labour leader is believed to be looking at ways to ensure companies paying their employees more are in some way reimbursed. One of the proposed ideas is to use the extra money that’s going into the Treasury since the reduced tax credits and use that to give them tax breaks.
Another popular idea was suggested by the Resolution Foundation whereby all companies will have to publicly disclose whether or not they are paying the living wage.
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