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

Lawyer

Hyndburn Borough Council
£49,817 – £53,051 per annum
You will be able to manage a varied and busy caseload in a timely manner and good at communicating with officers and councillors alike. Lancashire
Recuriter: Hyndburn Borough Council

Local Land Charges Officer

Hyndburn Borough Council
£30,023 – £32,578 per annum pro rata
The post holder will need to work to deadlines whilst maintaining high levels of accuracy and a good attention to detail Lancashire
Recuriter: Hyndburn Borough Council

Principal Allocations Manager

Royal Borough of Greenwich
PO4 - £49,056 to 52,194
The post requires providing expert guidance and support to staff on the most complex housing cases London (Greater)
Recuriter: Royal Borough of Greenwich

Bank Worker

Royal Borough of Greenwich
£16.60 per hour
We are looking for professionals who are creative, dynamic, and eager to do things differently London (Central), London (Greater)
Recuriter: Royal Borough of Greenwich

Social Worker - Families First in Greenwich

Royal Borough of Greenwich
£42,771-£55,323 Career Grade (ASYE SCP 29-30 | Consolidating SCP 32-35 | Proficient SCP 35-41)
We are looking for practitioners who have completed their ASYE programme. London (Greater)
Recuriter: Royal Borough of Greenwich
Linkedin Banner