BRITAIN’S economy would benefit from a £1.5 billion boost if just one in four low-paid workers received the voluntary real living wage, a new study suggests.

Increasing pay to £10.85 an hour in London and £9.50 outside the capital would boost productivity and spending, according to research by the Living Wage Foundation and the Smith Institute think tank.

The study also found that an increase in living wage jobs could provide huge benefits to local economies, especially in big cities.