Jump in 'poverty pay' in London

London Labour says 'poverty pay' is rising Credit: PA

The number of people being paid less than the London Living Wage has jumped 65% since the coalition government came to power, according to a Labour London Assembly report.

It found 917,000 workers in the capital are now paid less than the recommended £9.15 an hour while nine in ten Londoners think the cost of living has risen in the past year.

Fiona Twycross AM, London Labour economic spokesperson, said the report demonstrates the Government's failure to tackle low pay in the capital.

Over the past five years the rocketing cost of living in the capital has left the average Londoner almost £3,000 a year worse off in real terms. With housing, travel and living costs rising far faster than wages it's clear that the Government's economic policies are not working for the majority of Londoners on low and middle incomes.