Some 4.5 million UK workers are being paid below the real living wage, according to research by the Living Wage Foundation.
The foundation’s analysis of the latest Annual survey of hours and earnings by the Office for National Statistics (ONS) found that nearly a fifth (16%), were low paid in April 2024, up from 3.7 million, or one in eight (13%), compared to a year earlier. This represents an increase of 800,000 low-paid jobs.
The real living wage set by the Living Wage Foundation is currently set at £12.60 in the UK, with a higher rate of £13.85 in London. This is higher than the government’s national living wage for workers aged 21 and over, which stands at £11.44.
The findings also highlighted that the hospitality sector has the highest rate of low-paid roles, with 54% paid below the real living wage, equating to over three quarters of a million jobs. This is followed by the wholesale and retail (30%) and arts, entertainment and recreation (29.2%). Hospitality has had the highest level of low paid jobs for 13 consecutive years.
The sector with the largest number of low-paid roles is wholesale and retail (1,064,000 jobs), followed by hospitality (776,000 jobs) and human health and social work (677,000 jobs).
Northern Ireland has the highest rate of low-paid jobs (21%), with the steepest increase in the proportion of low-paid jobs compared to 2023, rising 4.6 percentage points. This is followed by North East England (19%) and the East Midlands (19%).
Katherine Chapman, director at the Living Wage Foundation, said: “The findings show the biggest rise in low-paid jobs we’ve ever seen, with millions of workers struggling to afford the basics as wages fail to reflect the cost of living. Employers that commit to the real living wage are not only giving their staff security and stability, but they’re also helping to strengthen the economy.
“If just a quarter of low-paid jobs were uplifted to the real living wage, it would put over £1 billion back into the UK economy through higher spending and productivity. At a time when too many workers are struggling to keep their heads above water, we need more businesses to step up and pay a wage that matches the real cost of living.”
