The Living Wage rate for workers in London is to increase by 25p an hour to �8.55, the capital’s mayor announced today.

Boris Johnson said the new rate will be worth �4.5 million a year for lower-paid workers.

The Living Wage rate outside London will also rise by 25p to �7.45, benefiting thousands of workers.

The current rates are �8.30 an hour in London and �7.20 in the rest of the country, compared with the national minimum wage of �6.19 for adults.

Mr Johnson said: “By building motivated, dedicated workforces, the Living Wage helps businesses to boost the bottom line and ensures that hard-working people who contribute to London’s success can enjoy a decent standard of living.”