A Fairer London: The 2010 Living Wage in London

Article taken from GLA Economics.

The London Living Wage is designed to provide a minimum acceptable quality of life.

In the sixth annual London Living Wage report the 2010 London Living Wage is calculated at £7.85 per hour, a 3.3 per cent increase on 2009.

The test of the London Living Wage is the extent of its acceptance by employers. The GLA Group continues to lead the way on this. There are now over 2,200 employees working for GLA contractors who are benefiting from the London Living Wage. In addition, close to 100 other organisations in London have adopted it.

We use two approaches to calculate the Living Wage. The "Basic Living Costs" approach estimates the costs of a 'Low Cost but Acceptable' (LCA) budget for a selection of households and calculates the wage required to meet them. The "Income Distribution" approach takes the figure as 60 per cent of the median income for London. The average of these two gives the "poverty threshold wage" of £6.80. In order to protect against unforeseen events a margin of 15 per cent is added to this, to yield the £7.85 figure.

We hope that you will find this report of interest. If you have any questions related to the research please contact GLA Economics.

To contact GLA Economics, please click here.

To download the report, please click here.

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