Scots earn below UK average living wage

WORKERS in Scotland are less likely to earn under the living wage than those anywhere else in the UK outside the southeast of England, new research indicates. The real living wage currently sits at £ 8.75 per hour outside London, where it is £10.20 per hour.

A study conducted by IHS Markit for professional services firm KPMG found 19 per cent of employees in Scotland earned under t he Living Wage, compared to 22 per cent across the UK as a whole.

The area where workers were most likely not to be paid the voluntary rate was joint between Northern Ireland and the East Midlands, both at 26 per cent.

Meanwhile, in the southeast of England, 18 per cent of employees were paid at least the hourly figure, falling to 20 per cent in London.

In both Scotland and the UK as a whole, the percentage of jobs paying less than the rate grew by one percentage point between 2017 and 2018.

Scotland has the lowest proportion of female workers earning under the Living Wage at 22 per cent, compared to 27 per cent across the UK. However, the UK figure remains 10 percentage points above that of male workers. Part-time workers are twice as likely to be paid below the Living Wage in Scotland, with 37 per cent below the threshold compared to 11 per cent of full-time workers. UK-wide more than one in four part-time workers (43 per cent) are paid under the figure.

The age group most likely to miss out on the Living Wage are those aged 18 to 21, affecting almost seven out of 10 (68 per cent) of these workers.

Calculated on an annual basis by the Resolution Foundation and overseen by the Living Wage Commission according to the basic cost of living in the UK and London, the so-called real living wage is voluntary for employers and applies to all employees aged 18 and over.

It differs from the UK-Government set national living wage of £7.83 an hour for those aged 25 and over and from the national minimum wage which ranges from £3.70 to £7.38 an hour depending on age and status.

Jenny Stewart, partner at KPMG in Scotland, said: “Scotland still has 435,000 workers paid below the living wage, and progress seems to have stalled with 19 per cent of the workforce paid below the living wage compared to 18 per cent last year.”