UK has seen a large increase in low-paid jobs

In the UK, the number of jobs that pay below the “real” Living Wage has increased by 800,000.

The Living Wage Foundation has released new research that shows that, in 2024 nearly 1 in 6 (15,7%) of jobs will pay less than the real Living Wage, an 800,000 increase over 2023.

These figures are based on an analysis of , the new Office for National Statistics data.

The real living wage is a voluntary rate of pay based on cost of life. The Resolution Foundation sets the rate each year. Over 15,000 people have agreed to pay this rate, which is above the national minimum wage set by the government.

In London, the rate is 13.85 pounds per hour and 12.60 pounds per hour for those living outside London. From 1 April 2025, the national minimum wage for people aged 21 or over will increase to PS12.21 from PS11.44.

The Living Wage Foundation has revealed that the costs of jobs have increased, and more workers are now living in poverty.

The Living Wage Foundation commissioned Cardiff Business School to conduct further research. If just one quarter of the people earning less than the Living Wage had their wages raised to the real Living Wage the increased productivity, spending and wages would bring PS1.2 billion into the UK’s economy.

According to the study, 53.6% percent of the jobs in this sector are paid below the Living Wage. The study found that this equated with more than 770,000 positions – almost twice as many as the two next sectors with the lowest pay rates: arts, entertainment and recreational (29.2%) and wholesale and retail (30%).

Wholesale and retail (1.064 jobs) is the sector with most low-paid positions. Social care and health also had 677,000 jobs in the low-pay bracket.

North East England (19.2%), East Midlands (18.8%) and Northern Ireland (20.6%) were the next highest regions for low-paid jobs. Northern Ireland had also experienced the largest increase in low-paid jobs, up 4.6 percentage points compared to 2023.

The foundation stated that in the last three years an increasing number of employers have signed up to pay a real Living Wage. One out of seven employees are now employed by a Living Wage Employer.

Katherine Chapman is the director of the Living Wage Foundation. She said, “High inflation rates and rising costs of living have caused a sharp increase in real Living Wage in recent years. These increases have exceeded wage growth for workers with lower earnings.” The UK has seen an increase in jobs that pay below the real living wage threshold despite the continued growth of the number accredited real LivingWage employers. It is encouraging to see that employers continue to sign up despite the sharp increases in rates and the current pressures on business costs.

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