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London living wage to jump to £9.40

The London living wage will rise by 25p an hour next year to £9.40, mayor Boris Johnson has announced.

The national living wage, which is set by the Living Wage Foundation, will increase by 40p to £8.25. Both rates are voluntary.

Estimates suggest 724 employers in the capital have now signed up to the higher wage rate and have six months to implement the changes.

Johnson said the increase would help “pay the people who work hardest on lowest incomes decently”.

Chancellor George Osborne announced in the Budget this summer that a compulsory living wage of £7.20 an hour will be introduced in April for all employees aged 25 and over. It will rise to £9 an hour by 2020.

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