UK sees largest number of companies paying below the Living Wage

Data from the Living Wage Foundation reveals that 4.5 million UK jobs were classified as low paid as of April 2024 – a significant jump from 3.7 million in 2023.

According to the organisation, this surge is attributed to wages failing to keep pace with rising costs – pushing more workers into in-work poverty. The real Living Wage is calculated based on actual living costs.

The hospitality sector has been the primary contributor to this increase, with 53.6% of all jobs in the industry paying below the real Living Wage. This represents more than three-quarters of a million jobs – approximately double the figure of the next two sectors with the highest rates of low pay: wholesale and retail, and arts, entertainment and recreation.

Katherine Chapman, director of the Living Wage Foundation, said: "Today’s findings show the biggest rise in low-paid jobs we’ve ever seen, with millions of workers struggling to afford the basics as wages fail to reflect the cost of living.

"But we know there is a solution. Employers that commit to the real Living Wage are not only giving their staff security and stability, but they’re also helping to strengthen the economy.

"If just a quarter of low-paid jobs were uplifted to the real Living Wage, it would put over £1bn back into the UK economy through higher spending and productivity. At a time when too many workers are struggling to keep their heads above water, we need more businesses to step up and pay a wage that matches the real cost of living."

What to take you’re learning to the next level? Then why not join more than 1,000 of your peers at this year’s Credit Week. To find out more, click here.