Number Of Workers Earning Less Than Living Wage On The Rise

Due to figures from think tank only for the last year 20% of the workforce in the UK which is about 4.8m people have claimed they earned below the so-called living wage. This means their number has risen too fast. The Resolution Foundation conducted a research the results of which point out that 25% of women and 15% of men who are employed did not manage to cover their basic needs for living in April 2012. This is the last month the search covered.

Since 2009 the number of employees receiving under the living wage had gone up by 3.4 million.

However, there are many different groups of workers who earn much less than the living wage. The worst results have been accounted for those under the age of 20 who go to work. In 77% of the cases they have received salaries far away from what they had expected. The other risk group is of the people working in restaurants and hotels.

London’s living wage is now £8.55 in London and £7.45 elsewhere.

Matthew Whittaker, report author and senior economist at the Resolution Foundation, said: “For most of the working population real wages have been flat or declining for many years and as a result more and more people have dipped below the level of the living wage.”

He added that all the parties need to think carefully about the proper way which would lead to boost in the rates of pay.In addition may be this should be written into the employment contract.

The answer that came from the government was that they were in fact encouraging all employers to give their workers much more money than the national minimum wage.

The spokesman added:

“Despite being in tough times, this Government is doing absolutely everything it can to help people on low pay with the cost of living.”