A major increase in the number of workers entitled to the London Living Wage was agreed by the City of London Corporation today.

The governing body for the Square Mile will also encourage other firms to follow suit by promoting the Living Wage to City businesses through a new campaign which it will launch in November.

The City Corporation’s Policy and Resources Committee today decided to strengthen its own Living Wage policy by paying its own staff and its suppliers’ staff the new rate, with immediate effect, when the updated London Living Wage is announced in November each year. This is opposed to paying staff the new rate from April the following year, which is the most common approach taken by employers.

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The organisation already ensures its own staff, apprentices and suppliers’ staff are paid in line with the Living Wage Foundation’s (LWF) accreditation terms and conditions.

And the City Corporation has now agreed that all contract workers delivering two or more hours work for the organisation will be paid at least the Living Wage – which in London is currently £10.20 per hour.

The move comes after the City Corporation found that staff contracted by suppliers could legally be hired for below London Living Wage levels under guidance from the LWF.

LWF guidance says that the London Living Wage should only be paid where suppliers employ contracted staff who work two or more hours in any given day in the week for eight or more consecutive weeks in a year.