1 in 5 Brits ‘trapped’ in poverty

One in five workers across the UK are considered ‘trapped’ in working poverty, according to new findings that reveal a millions are struggling to find a job that offers earnings above the real Living Wage. The study by IHS Markit for KPMG has revealed how around 22% of all jobs in the country aren’t paying enough for their employees.

The real Living Wage is calculated according to the basic cost of living in the UK and is set independently by the Living Wage Foundation. Different from the official national living wage, which is enforced by law for over 25s, the wage is worked out based on the cost of a basket of household goods and essentials.

For five years in a row, the research finds that women are considerably more likely to be paid below the real Living Wage than men. With nearly 225,000 more women in work than last year, this year’s data shows that just over one in four (26 percent) of female employees earn less than the real Living Wage, compared to 16 percent of all males. In numerical terms this equates to 3.4 million female employees versus 2.1 million male employees.

Around 3.1 million part-time employees earn less than the real Living Wage, compared with 2.4 million full-time workers. Part-time jobs are around three times more likely to pay below £8.45 per hour (or £9.75 in London) than full-time roles. Some 42 percent of part-time workers now earn less than the real Living Wage, compared with 13 percent full-time workers. Indeed the difference is so stark that despite accounting for less than one-third (28 percent) of all UK jobs, part-time roles represent more than half (56 percent) of all jobs paying less than the real Living Wage.

Regionally, Northern Ireland has the highest proportion of jobs earning below the real Living Wage at 26 percent, followed by the East Midlands, Yorkshire and Humber, Wales and the West Midlands all at around 24 percent. The lowest proportion of employees earning less than the Living Wage is found in the South East at 17 percent, Scotland at 18 percent and London at 19 percent.

“Today’s figures show that more work needs to be done if we are to eradicate in-work poverty,” said Andy Bagnall, director at KPMG UK. “It’s unfortunate that in 2017 more than 5 million working people in the UK are earning below the real Living Wage and cannot enjoy the standard of life so many of us take for granted.”

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