Banking giant Barclays has caved in to pressure from civic-activism charity Telco and agreed to set minimum pay and conditions for contractors at its London HQ.
Following talks with Telco, the bank has agreed to ensure that outsourced cleaners at its Canary Wharf offices will get a pay rise to £6 an hour.
They will also receive a 4.5 per cent employer pension contribution, 15 days paid sick leave and eight paid bank holidays in addition to 20 days annual leave.
Barclay's move is the first sign that Telco's campaign to get London's financial institutions to pay a 'living wage' of £6.70 an hour is having an effect.
Telco chairman Paul Regan said: "Barclay's commitment to the living wage is good news for communities in East London."
So far, other banks such as HSBC have refused to set minimum standards for contractors.
Separately, Barclays has teamed up with the Shaw Trust to offer short-term job placements to disabled and disadvantaged people.