Mayor tells business: Living Wage is no threat

01/08/2008

Mayor Boris Johnson has told businesses they have nothing to fear from his newly proposed London Living Wage (LLW).

Mr Johnson insisted the initiative was voluntary and rejected claims it would lead to inflation and job cuts.

He told Personnel Today: "No-one is talking about compulsion. Businesses might actually find it cost-effective in making staff happier and more productive, and reducing staff turnover."

However, a recent poll of employers by the London Chamber of Commerce and Industry revealed almost half would cut back on existing plans if they were forced to pay.

Policy director Helen hill said the LLW "is a huge ask for many firms in the capital, especially in the current economic climate".

Well-paid workers in legal jobs are unlikely to benefit from the LLW as their pay is expected to already exceed its £7.75 per hour minimum.

The increase of 35 per cent on the national minimum wage (£5.52) far exceeds the UK's current rate of inflation, which the government has estimated at 3.8 per cent.

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