The voluntary living wage has increased further above the compulsory national rate being brought in next year.

The living wage, set annually by the Living Wage Foundation and based on the cost of living in the UK, has increased by 40p to £8.25 an hour outside London and by 25p to £9.40 an hour in the capital.

Both figures are above the national minimum wage of £6.70 an hour and George Osborne’s “national living wage” of £7.20 for adults, which will come into force next April.

The national living wage will be compulsory for workers aged 25 and above and will effectively replace the minimum wage.

Paul Kenny, the GMB general secretary, said the increase in the London living wage proved that the rate introduced by Osborne was a “sham”.



“The chancellor is using this as a cover to take away tax credits from the lowest-paid workers in the country,” he said.

The number of employers paying the living wage in London has increased from 429 to 724 in the past year.

The mayor of London, Boris Johnson, announced the rise in the capital’s voluntary rate at an Oliver Bonas fashion and gift store.



He said: “It is a mark of [the] esteem companies have for their staff. As our economy continues to grow and employment in London increases, it is essential all hardworking Londoners receive a fair share of the proceeds of the capital’s success.”

Oliver Tress, the managing director of Oliver Bonas, said: “It makes complete sense to pay all our team the London living wage.”

