RMT general secretary Mick Lynch said: “Following further positive discussions today, the negotiations on a pay deal for our London Underground members can now take place on an improved basis and mandate with significant further funding for a settlement being made available.

“This significantly improved funding position means the scheduled strike action will be suspended with immediate effect and we look forward to getting into urgent negotiations with TfL in order to develop a suitable agreement and resolution to the dispute.”

“The strike action affecting London Underground from Sunday 7 January to Friday 12 January has been suspended.

“Services will be disrupted this evening and tomorrow morning, and customers should ensure they check their journeys before travelling.”

Simon Calder, The Independent’s travel correspondent, said the news the strike had been cancelled at the last minute would be welcomed for commuters and businesses alike. He said:

“Basically, I think that TfL has managed to find more money down the back of the sofa – and has conceded that its “full and final” offer of 5 per cent has some wriggle room.

“After talks broke down on Friday night, it appeared the chances of a solution had vanished – evidently, though, there was will on both sides for a settlement.

“Ironically, the restoration of the full Tube service will make it easier for members of the Aslef executive committee to meet in at the London headquarters of the train drivers’ union this coming week – during which it seems highly likely that more national rail strikes will be called for late January.”

A source close to the talks said that TfL had offered up to £30m extra to help resolve the pay dispute.

A spokesperson for the Mayor of London, said on Sunday: “Strikes are bad news for everyone, and no worker or union wants to have to make the difficult decision to take industrial action.

“Before the pandemic and the subsequent emergency funding deals, the number of days lost due to strikes action had reduced by over 70 per cent compared to the previous Mayor’s time in office.”

After the strikes were cancelled at the eleventh hour on Sunday evening, he slammed government ministers for an “adversarial approach” to engaging with unions.

In a statement he said: “This shows what can be achieved by engaging and working with trade unions and transport staff, rather than working against them.

“In contrast, the adversarial approach taken by ministers has led to years of strikes across the country, whether on national rail, or in our health and education services – all exacerbated by the cost-of-living crisis.”

“Whilst overall consumer prices have gone up by about 4 per cent over the period – and there has been a further rebound in commuter volumes – you could argue it [is] closer to £100m/day,” Mr French suggested.

However, this is higher than previous estimates, with the Centre for Economics and Business Research finding the cost to be closer to £24m during Tube strikes in June 2022.

The RMT announced it was suspending the planned strikes after progress in talks with Transport for London (TfL).

RMT general secretary Mick Lynch said: “Following further positive discussions today, the negotiations on a pay deal for our London Underground members can now take place on an improved basis and mandate with significant further funding for a settlement being made available.

“This significantly improved funding position means the scheduled strike action will be suspended with immediate effect and we look forward to getting into urgent negotiations with TfL in order to develop a suitable agreement and resolution to the dispute.”

“They would have caused huge disruption for Londoners and would have been a major blow to the capital’s businesses at the worst possible time.

“This shows what can be achieved by engaging and working with trade unions and transport staff, rather than working against them.

“In contrast, the adversarial approach taken by ministers has led to years of strikes across the country, whether on national rail, or in our health and education services – all exacerbated by the cost-of-living crisis.

“The suspension of strikes is really good news as commuters return after the new year.”

Strikes by London Underground workers which would have crippled Tube services this week have been suspended following progress in talks over a pay dispute.

Members of the Rail, Maritime and Transport union (RMT) were due to walk out from Monday until the end of the week in protest at a 5% pay offer.

The RMT announced it was suspending the planned strikes after progress in talks with Transport for London (TfL).

RMT members are walking out in the ongoing dispute over wages.

In December last year, the RMT rejected a “below inflation pay offer” of 5 per cent from the London Underground.

The union described the offer of 5 per cent as “unacceptable when TfL has created a bonus pot of £13 million for senior managers and the commissioner took an 11 per cent pay rise in 2023 taking his salary up to £395,000.”

The RMT said it wanted to see full staff travel facilities for all Tube workers restored and criticised bosses for freezing pay bands, warning that it would create a “two-tier workforce”.