Dee Doocey, the Liberal Democrat spokesperson for economic development in the London Assembly, issued the challenge to Livingstone after he had called on employers in the Capital to pay workers a "living wage" of at least £7.20.

 

The new rate, worked out by the Living Wage Unit, is higher than the national minimum wage of £5.35  an hour, largely because of the cost of housing in London, one of the most expensive cities in the world.

 

"The London Living Wage is vital to ensure the capital retains a skilled, committed workforce and this applies to those who provide all the essential services - without which London would grind to a halt - as much as it does to highly paid brokers, bankers or lawyers," Livingstone said.

 

The Mayor said it was unacceptable that about one in seven of London's full-time workers and almost half part-time workers were paid less.

 

“The Mayor is right that low-paid Londoners should earn a living wage, but this announcement is just hot air unless he can make it happen for the biggest employment project about to hit the Capital," said Doocey.

 

"The Mayor and Seb Coe signed an ‘Ethical contract’ with London Citizens before winning the Olympics, promising a living wage for everyone involved.

 

"Yet to date, no living wage has been included in the contracts allocated and Seb Coe told the London Assembly that 'any of the issues about a living wage is a consideration, not a condition'.

 

"This is of great concern because LOCOG will be letting contracts for all the traditionally low-paid jobs such as catering and cleaning.

 

"One in seven London employees are living on poverty wages.

 

"Now Gordon Brown has abolished the 10 per cent tax rate, the poor are set to get poorer.

 

"Someone earning the new London Living wage of £7.20 will get just £5.74 an hour after tax and National Insurance have been deducted and be put in the position of having to claim absurdly complicated tax credits.

 

"The Olympic bid promised thousands of extra jobs for Londoners. 

 

"These jobs must be properly paid if they are to leave a lasting legacy of employment."