London mayor Sadiq Khan has confirmed that the capital's official living wage is to climb by 35p to £9.75 an hour.
The decision means that the London Living Wage has now climbed by 17.5 per cent since 2011, with 60,000 employees benefiting from the scheme.
A further 309 firms have signed up to be living wage employers, bringing the total to just over 1,000 firms across the city.
During the election campaign, Khan promised that the living wage would rise beyond £10 during his first term as mayor.
Speaking today, he said: “The London Living Wage is a fantastic campaign and I will be working to encourage more businesses across our great city to get involved.
“This will not only help London become a city where it’s a badge of pride for employers to pay the London Living Wage, but help us become a city where everyone benefits from the capital’s success.”
Labour assembly member Fiona Twycross – who also chairs Khan's London Fire and Emergency Planning Authority – added the increase represented “a welcome step” towards the £10 goal.
"However, we need more low paid workers to have their wages linked to the London Living Wage so it's now over to businesses to recognise that paying properly pays off and to adopt the new uprated London Living Wage for their organisation,” she added.