The Royal Borough of Greenwich, an Accredited Living Wage employer, is part of a movement of over 3,500 employers who voluntarily opt-in to paying the real Living Wage. Royal Greenwich has committed to the increase - independently calculated to meet the cost of living - which will be implemented within six months.

The new UK rate will apply to all staff at Royal Greenwich and its subsidiary companies and many of its partner organisations.

The new London Living Wage rises to £10.20 an hour.

Employers who have signed up say they have made savings, improved staff recruitment and retention, seen less absenteeism and increased productivity.

The Royal Borough was accredited as a Living Wage employer in September 2013 and launched its own Greenwich Living Wage Campaign in 2014. The Borough is home to just two per cent of London-based businesses but a significant proportion of accredited London Living Wage Employers are based in Royal Greenwich.

'Promoting a Living Wage is one of our key priorities'

Councillor Sizwe James, Cabinet Member for Transport, Economies and Smart Cities, said: "Tackling the issue of low pay is a key element of our anti-poverty strategy - and promoting a Living Wage is one of our key priorities towards stable economic growth and job creation locally.

"I am proud that many of our local businesses already pay their staff the London Living Wage, and I am sure that our residents who will receive the increase will welcome it, especially as we get ready for the Christmas season. As a local authority, we are proud to implement this increase - it's a win-win for us and not only helps our employees afford to live with dignity but also helps our business by improving motivation, and retaining and attracting a quality workforce."

'Fair day's pay can improve the quality of staff's work'

Katherine Chapman, Director of the Living Wage Foundation, said: "Year-on-year, we see organisations and businesses across the UK embracing the real Living Wage as they recognise that a fair day's pay is not only the right thing so to but can improve the quality of staff's work, reduce absenteeism and increase motivation and retention.

"Today's increase acknowledges that the cost of living continues to rise for workers everywhere and the leadership shown by businesses who welcome this is a cause for celebration during Living Wage Week (5 to 11 November), sending a positive message to the business community to show what others can achieve."

Find out more about the Living Wage Week (Living Wage website)