Five Million Paid Less Than Living Wage

A KPMG-commissioned study has found that almost five million of staff throughout the UK and Northern Ireland are paid less than the recommended living wage level. It currently stands at £7.20, although those working in London see a £8.30 level due to increased living costs.

The living wage level is a calculation on how much per hour a worker should be paid in order to provide a decent standard of living for them. This includes the ability to pay rent, bills and necessities.  The living wage is a voluntary rate of pay above the mandatory minimum wage level of £6.19 for those over 21.

The South East of England and London have 16% of workers earning less than the recommended £8.30, although the percentages rise to 23% in Wales and 24% in Northern Ireland.

Calls for the minimum wage to be hiked up to the living wage level have been condemned by the government and economists. It is widely believed that increasing the cost of hiring new employees could seriously hurt employment levels. As the BBC’s economic editor Stephanie Flanders says, “They want an increase in wages for people at the lower end of the pay spectrum that doesn’t cost anyone any money”.

The TUC (Trade Union Congress) have lambasted the findings. Frances O’Grady, incoming TUC leader, said "It is shocking that in this day and age one in five workers is still earning less than is needed to maintain a decent standard of living. The living wage is not a luxury and means that low-paid workers don't have to make tough choices over whether they can afford the everyday things that most of us take for granted, such as their fuel bill or a winter coat for their children.

"Paying a living wage makes a huge difference to the individuals and their families and yet does not actually cost an employer much more.”

Bar staff are the worst affected it seems, with 90% receiving less than the living wage. The same can be said for waiters and waitresses, 85% of whom fail to receive the living wage. Sales and retail assistants are also having trouble, more than 780,000 of them are paid less than the recommended level.

On top of these facts, during the KPMG study (KPMG has in fact rolled out the living wage to all of its lowest paid employees) it seems that almost half of people polled that earn less than the living wage expect their finances to be in a worse condition in 12 months time and nearly a quarter feel their job security has gotten worse.

All three main party leaders had supported the Living Wage campaign before the 2010 election, but none of them committed to implementing it.

London Mayor Boris Johnson has recently begun to pay all of his staff within London the recommended living wage, with plans to implement it throughout the country over time. Lush boss Mark Constantine has also agreed to the living wage recommendations within his stores and has seen a large boost in morale and effectiveness.