Five million people paid less than living wage

Five million workers in the UK are paid less than required for a basic standard of living a report suggests.Five million people paid less than living wageThe proportion is worst amongst waiters and bar staff-  at up to 90% of workers, the research for accountants KPMG suggested.

It said that nearly five million people failed to command the living wage – a pay packet that enabled a basic standard of living.

The rate stands at £8.30 an hour in London and £7.20 in the rest of the UK.

This rate is voluntary, unlike the National Minimum Wage – the amount that employers must pay by law, which is set at £6.19 an hour for those aged 21 and over.

“Times are difficult for many people, but of course those on the lowest pay are suffering the most,” said Marianne Fallon, head of corporate affairs at KPMG, which has itself signed up to pay the living wage.

“Paying a living wage makes a huge difference to the individuals and their families and yet does not actually cost an employer much more.  Tackling in-work poverty is also vital if we are to enable more people to improve their life prospects and increase social mobility in this country.”

The report suggested that Northern Ireland had the highest proportion of people earning below the living wage, at 24% of workers, followed by Wales at 23%.

The lowest levels were in London and the South East of England, both at 16%, it said. In terms of total numbers, London, the North West of England and the South East of England had the most.

When looking at sectors of employers, some 90% of bar staff and 85% of waiters and waitresses failed to get as much as the living wage.

Some 780,000 sales and retail assistants were not paid to living wage level, the highest total of any group of employees, the report suggested.

The government is considering whether to push on with plans to end national pay bargaining and introduce a system of regional or local pay rates.

However, a group of 60 academics have warned, in a letter to The Times newspaper, that any new system could widen inequalities between different parts of the UK.

The group claimed that there was “no convincing evidence” that regional pay would boost local economies, and that it could reduce consumer spending. They argued that would depress pay for public sector workers outside London and the South East of England.

This follows a campaign by unions to stop any introduction of regional pay rates for public sector workers.

December 6, 2012 · Home Based Jobs · Comments Closed
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