One in five workers get less than a living wage

Another 1.4 million working people are having to get by on less than a living wage, says a new report.

The Resolution Foundation report, Low Pay Britain 2013, shows that 4.8 million British people – around 20% of all workers – are paid less than the living wage.

This is up from 3.4 million in 2009.

The living wage is the amount people need to earn to afford a basic lifestyle without having to rely on in-work benefits. This is £7.45 an hour outside London and £8.55 for workers in London.

The Resolution Foundation report says that millions of new workers are having to work in poorly paid, part-time jobs rather than being paid a living wage in full-time employment.

The report’s key findings include:

  • οne-in-five workers (21%) – or just over five million people – earned less than the low-pay threshold in 2012;
  • women are at particular risk of low pay, with 26% paid less the main poverty threshold in 2012;
  • younger and older workers are significantly more likely to fall below low pay and living wage thresholds than those between 30 and 55;
  • two out of every five part-time workers (43%) were low paid in 2012.

“We are hurtling towards a two-tier workforce where women and part-timers, the young and the old are slipping to the bottom of the pile,” warned UNISON assistant general secretary Karen Jennings today. “Encouraging employers to adopt a living wage is only the start of addressing this divide.”

UNISON will be pushing for action to tackle at next week’s TUC congress.

Low Pay Britain Resolution Foundation report [PDF document]

UNISON Knowledge topic: Low pay (member only content)