London mayor Boris Johnson has announced the Living Wage in London will be set at £9.40 next year.

The optional amount, as set by the Living Wage Foundation, is used by more than 2,000 employers in London to set wages.

The number of employers paying the London Living Wage has increase to 724 from 429 last year.

Sarah Vero, director Living Wage Foundation said: “Today we are celebrating those 2,000 responsible businesses that are voluntarily paying the Living Wage to their staff. These employers are not waiting for Government to tell them what to do; their actions are helping to end the injustice that is in-work poverty in the UK now. The Living Wage campaign is growing at pace. Today more UK businesses are announcing their Living Wage accreditation including national retailer Richer Sounds, Lloyds Banking Group and Unilever. They join a growing list of organisations ranging from FTSE 100 companies to independent businesses, SMEs and third sector employers who all share our belief that work should be the surest way out of poverty. The Living Wage is good for people and for business.”

At present the Living Wage is £9.15 in the capital based on cost of living, considerably higher than the minimum wage - currently £6.70 for over 21s.

The national living wage will come into effect from April 2016 meaning employers will have to pay £7.20 to everyone over 21.

Accredited Living Wage employers will pay their staff the voluntary rate of £8.25 per hour while the national living wage will be compulsory from April for over 25s.