“Today’s findings show the biggest rise in low-paid jobs we’ve ever seen”
New research from the Living Wage Foundation has revealed just how many people in the UK are trapped in low paid employment. The organisation’s latest report shows that 4.5 million jobs in the UK in 2024 were paid less than the real Living Wage. That equates to roughly 1 in every 6 jobs.
The Living Wage Foundation found that this is a significant increase on the previous year, with 800,000 more jobs paid below the real Living Wage than in 2023.
The real Living Wage is currently set at £12.60 outside London and £13.85 within London. This is considerably higher than the government mandated minimum wage of £11.44 an hour.
The Living Wage Foundation calculates the real Living Wage by assessing the amount people need to earn in order to maintain a decent standard of living.
According to the Living Wage Foundation, the hospitality sector has the highest rate of low paid jobs, with 53.6% of all jobs in the sector paid below the real Living Wage. This equates to over three quarters of a million jobs.
Speaking on the new analysis, Katherine Chapman, Living Wage Foundation Director, said: “Today’s 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.
“But we know there is a solution. 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.”
The publication of the report has led for calls for the government to ‘end poverty pay’.
Responding to the report, Green Party Deputy Leader Zack Polanski said: “This report sets the record straight – it is increasingly difficult for people to simply work their way out of poverty. Those in work are struggling to pay today’s bills and there are rail fare rises, energy bill increases and council tax rises coming this Spring.
“People in work must be paid a real living wage as an absolute minimum. This Labour government should act without delay to end poverty pay.”
In the past three years record numbers of employers have signed up to pay the real Living Wage, including to their third-party contractors like cleaners and security guards, with 1 in 7 employees now working for an accredited Living Wage Employer. Over 15,000 UK businesses are accredited with the Living Wage Foundation, including Aviva, Everton FC and LUSH, as well as thousands of small-to-medium sized businesses.
Chris Jarvis is head of strategy and development at Left Foot Forward
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