The department joins more than 1000 employers committed to paying the Living Wage after being accredited by the Living Wage Foundation.
Energy and Climate Secretary Edward Davey announced that the department would pay all of its employees the Living Wage from 1 April 2014.
On 21 July this year, Citizens UK awarded the Living Wage Whitehall Champion 2014 cup to Ed Davey.
Edward Davey said:
“Paying the Living Wage means we get to keep the best people, which makes good business sense too.
“My Department has set an example to employers across the country. I want people to want to work here and stay here.”
The living wage is based on the amount an individual needs to earn to cover the basic costs of living. In London, the Living Wage rate is £9.15 per hour. Those working outside of London will get a minimum of £7.85 per hour.
The Living Wage is calculated by the Centre for Research in Social Policy, Loughborough University, in London, the rate is set by the Greater London Authority.