London minimum wage increase

A new report says that London should have a higher national minimum wage because of rising living costs and growing in-work poverty.

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London can afford £6.75 an hour

Report suggests minimum wage of £6.75 an hour for London's workers Credit: Dominic Lipinski/PA Wire

The Centre for London think-tank and Trust for London charity said the capital's economy could support a rate of £6.75 an hour for working adults; 7% higher than the statutory figure of £6.31.

The higher rate would increase the pay of around 175,000 workers by up to £800 a year, said the report.."

The national minimum wage, set by The Low PayCommission, does not take into consideration regional variations in theeconomy. The report argues that whereas low-paid workers in the rest of thecountry have benefitted from its introduction, those in London have not to thesame extent.

The report suggests that the very differentnature of the capital's economy means London employers could afford to pay ahigher minimum wage than they currently do, without causing job losses.

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