Striking Aramark workers at the Department for Business, Energy and Industrial Strategy (BEIS) are on the verge of reaching a deal with the government.
In July an escalation of a pay dispute saw catering employees, led by the PCS Union, stage an indefinite walkout alongside workers contracted by ISS in other areas of the department. The strikers were demanding to be paid the London Living Wage and receive workers' rights similar to peers in the civil service.
BEIS has now said Aramark and ISS staff can expect a pay increase to the London living wage of £10.55.
Business secretary Andrea Leadsom said: "All our staff at BEIS are highly valued, and their work greatly appreciated – whether they are employed by the department or through our contractors.
"The rates announced today will mean a significant pay increase for many of those working for Aramark and ISS in BEIS who keep our buildings going every single day, providing the services we rely on. This is clearly the right thing to do."
This afternoon a PCS Union spokesman said a deal had yet to be formerly agreed to end the action but added: "It appears the government is prepared to settle the dispute fairly but we will have to see the detail when we meet later this week."
The action had gained support from several Labour MPs and figures in the trade union movement, including shadow business secretary Rebecca Long-Bailey, shadow chancellor John McDonnell and TUC chair Frances O'Grady.