04 September 2013

1.4m drop below the living wage

Since 2009, the earnings of 1.4 million employees have dropped below the national living wage, a report by the Resolution Foundation has revealed.

The report – which puts Britain near the bottom of the low pay league table - suggests we are leaning towards a two-tier workforce, with 20% of UK employees earning below the set standard of living.

This percentage is equivalent to the 4.8million Britons who earn below the minimum income placed to meet basic living needs, which is currently set at £7.45. This is an increase from the 3.4million low-earning employees in 2009 at the height of the recession

According to the report, published today, the annual median pay now stands at £21,300 - £3,300 lower than the pre-recession peak. While ministers have focused on the appearance of economic recovery, there is concern over the widening pay gap.

The employees who are earning under this amount are stuck in low-paid jobs, as the demand for middle-skilled and middle-paying jobs has fallen due to the growth in economic output and production since the early 2000s.

This wage stagnation demonstrates that being in work does not guarantee economic security, what Labour shadow minister Rachel Reeves has deemed a 'living standards crisis'.

According to the report, women are harder hit than men, with 25% of women in 2012 earning under the living wage, up from 18% in 2009. Low earning men increased from 11% to 15% in the same period.

The lowest paid jobs are those in the hotel and restaurant sector, with new workers trapped in temporary and part-time work resulting in a divided workforce.

Report author, Matthew Whittaker, said: 'Britain has a sorry story to tell on low pay.'

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Ebbsfleet Development Corporation
up to £165,000
Ebbsfleet is one of the UK’s most ambitious regeneration projects, a 21st-century Garden City Ebbsfleet, Kent
Recuriter: Ebbsfleet Development Corporation

EHC Assessment and Review Co-Ordinator - Part Time

The Royal Borough of Kensington & Chelsea Council
Up to £44937 per annum
Champion the journey for children and young people with special educational needs, ensuring they have every opportunity to thrive.This is a part time, England, London, City of London
Recuriter: The Royal Borough of Kensington & Chelsea Council

Part Time Environmental Health Officer (Housing and Caravan/Mobile Home Site Licensing)

Ribble Valley Borough Council
SO2 (scp 29-32) £39,862 to £42,839 per annum pro rata
We are looking for an enthusiastic, self-motivated and experienced Environmental Health Officer Clitheroe, Lancashire
Recuriter: Ribble Valley Borough Council

UTMC Principal Engineer

Kirklees Metropolitan Council
£37,035-£45,718 (dependent on experience)
Join our team at Kirklees Council and help shape the future of urban mobility. Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Coroners and The County Mortuary Service Manager

West Northamptonshire Council
£55036 - £58879
About the role West Northamptonshire Council is seeking a dynamic and experienced Coroners and County Mortuary Service Manager to lead the operational delivery of two critical services
Recuriter: West Northamptonshire Council
Linkedin Banner