The amount of jobs paying below the real living wage has been forecast to jump to 5.1 million next year, despite the number of workers earning below the rate standing at the lowest it has been in 10 years (3.5 million), according to new research.
The Living Wage Foundation’s findings revealed that this is the largest drop in a single year, with the number of workers earning below the rate falling by 4.9 percentage points since April 2021, when 4.8 million workers were paid below it. The highest number of workers on the rate was 6.3 million in 2018 and the previous lowest amount was 4.8 million in 2012.
According to the Annual Survey of Hours and Earnings from the Office for National Statistics, which highlighted that one in eight UK workers are earning less than the current rate. This equates to 12.2% of all employee jobs.
The real living wage is calculated based on what people need to live on and currently stands at £10.90 across the UK and £11.95 for those based in London. A full-time worker earning the rate would receive £2,730 more than someone earning the government’s national living rate, while an employee on the London living wage would be almost £5,000 better off than someone on the national rate.
Katherine Chapman, director of the Living Wage Foundation, said: “The campaign for a real living wage has had a huge impact on tackling in work poverty, with more than 370,000 workers now receiving an annual pay rise thanks to the commitment of 11,000 UK employers.
“However, while this year’s data on low paid jobs appears positive, our forecasts demonstrate a bleak picture for next year, with an estimated 5.1 million workers set to be paid below the real living wage. With the cost of living rising and families facing more pressure this winter, it has never been more important for businesses do the right thing and commit to paying a real living wage.”
