One in six paid below real living wage rate
THE North East has the highest proportion of people in low-paid work, with one in six employees paid below the real living wage rate, a new report suggests.
Analysis of Office for National Statistics (ONS) data by the Living Wage Foundation found that the number of people in low-paid jobs has risen for the first time since 2020, with 3.7 million UK jobs now paid below what the foundation classes as the “real” living wage. That amounts to one in eight people in the UK but the rate is higher in the North East, where 170,000 people are paid below that rate.
Low wages were seen most often in the hospitality sector, where nearly half of all jobs in the sector paid below the real living wage. More than a third (39%) of those earning less than the real living wage report regularly skipping meals for financial reasons and significant numbers also say they struggle to heat their homes and have fallen behind on their rent or mortgage payments.
The real living wage is currently set at £12 an hour, higher than the Government rate of £10.42, though that is set to rise to £11.44 in April. More than 14,000 UK businesses are accredited with the Living Wage Foundation for paying the higher rate to all staff, while 130 have also become accredited ‘Living Hours’ employers, providing a guaranteed minimum of 16 hours work a week, a month’s notice of shift patterns and a contract that reflects hours worked. Katherine Chapman, Living Wage Foundation director, said: “The campaign for a real living wage has had a huge impact tackling in-work poverty, with over 460,000 workers now receiving an annual pay rise thanks to the commitment of 14,000 accredited living wage employers. However, today’s findings show there is more to do with 3.7 million workers not earning a wage in line with the cost of living.
“With the cost-of-living crisis far from over, earning a real living wage has never been more important. Employers who want to do the right thing and protect their staff from rising prices can do so, by joining the 14,0000 Living Wage employers who are committed to always paying a wage in line with the cost of living.”
Jon Sibley, owner of Newcastle’s Town Mouse Ale House, has committed to pay his staff the real living wage.
He said: “Ensuring my staff receive a living wage is a top priority because I want to pay a salary that they can actually live on.
“I genuinely appreciate the dedication my team shows. Hospitality is about long shifts, physically and mentally intensive graft and people deserve to be recognised for the work they do, and not be forced out of a career they love due to poor pay and conditions.
“Our employees’ relationship with our customers is incredibly important, customers recognise this and keep coming back. At a time where pubs and hospitality is struggling as an industry, retaining experienced staff that customers love to see is all-important.”