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Intercontinental Hotels Group backtracks on living wage promise

Its promise to pay the higher wage helped the group gain its Olympic contract

Intercontinental Hotels Group (IHG) has reversed on its decision to pay the living wage to its employees.

The group’s promise to pay the higher wage helped secure its contract as the official hotels provider for the London Olympics in 2012.

IHG’s chief executive, Keith Barr, has said that the change in the decision was partly down to the increase of the cost of employment since the vow was made.

The London Living Wage was recently increased to £10.20 an hour and the national living wage rose to £8.75 across the rest of the country.

A spokesperson for IHG told the Guardian: “Over the past five years there have been several valuable changes to UK pay and benefits legislation, including the introduction of a national living wage, pension auto-enrolment, higher national insurance and the apprenticeship levy.

“We won’t be moving forward with gaining the voluntary London living wage accreditation, but remain focused on hospitality as a great career, as well as the associated pay and benefits, to ensure we remain an employer of choice.”

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