Islington Council is the UK’s first landlord to order that firms using its buildings pay living wage to all staff.

The town hall owns 60 commercial properties in the borough which are let to a variety of businesses, including restaurants, warehouses, a dentist, architects and shops.

Under the policy, announced today during Living Wage Week, new leases will include an agreement to pay at least the living wage, which in London rose today from £9.75 to £10.20 an hour. Any company that doesn’t pay it will be turfed out when their lease expires.

Islington became the UK’s first living wage council in 2012 and has 125 other accredited Living Wage employers, among the highest in the UK.

Finance chief Cllr Andy Hull, said: “No-one should have to do a hard day’s work for less than they can live on.”

Katherine Chapman, director of the Living Wage Foundation praised Islington for leading the way. The policy came in on Monday.