Council Leader Nickie Aiken said:
“Westminster City Council pays our own staff the London Living Wage and we’re now extending that to our contractors.
“Traditionally contracts have been awarded for a specific job with rates of pay set by the contractor rather than the council. However, we feel we have a responsibility to those hundreds of people employed through external companies who work hard to provide first class services to our residents. As part of our City for All ambition to be a caring and fairer city, we need to make sure people are paid a realistic wage for working here.
“We also want to attract the best talent to work for us, and that means recognising the financial reality of working in central London. Not only is this the right thing to do, it brings extra benefits to the City and our residents.
“Having taken the decision to apply to become accredited for the London Living Wage, we will now work on a plan to ensure LLW for all of our relevant contracts over a period of time.”
The London Living Wage is a benchmark threshold rate of pay for workers living or working in London that is set annually by the Living Wage Foundation to reflect the increased costs of living in the capital. The current rate is £10.55 per hour versus the statutory National Minimum Wage of £8.21.
Research from Living Wage Foundation and Cardiff University shows the vast majority (93 per cent) of employers who adopt the Living Wage say their business benefited and three of four companies say their staff are more motivated and stay longer.
Under the plans approved, the council will also broaden the London Living Wage to apply to its apprentices from 1 August 2019.