Research published by an independent inquiry into the living wage warns that spiralling living costs and stagnating wages are causing a “double squeeze” on lowest-paid workers.
The Living Wage Commission claims that 21% of the British workforce, or 5.24 million workers, are paid below a living wage. This number has risen by 9% over the past year.
It contrasts this with figures that suggest housing costs have tripled over the past 15 years, and electricity, gas and water bills have risen 88% in the last five years.
Commission chair Archbishop Sentamu called on employers to address the wage disparity.
“The idea of making work pay is an empty slogan to millions of people who are hard pressed and working hard, but find themselves in a downward social spiral,” he said.
“They are often in two or three jobs just to make ends meet. Meanwhile the UK taxpayer picks up the bill in tax credits, in-work benefits and decreased demand in the economy.
“With the economy showing signs of recovery, employers that can pay a living wage must do so.
“They should choose between continuing to make gains on the back of poverty wages, or doing the right thing and paying a fair wage for a hard day’s work.”
Trade Union Congress general secretary Frances O’Grady backed the call. “One way of easing the financial pressures on low-paid families would be for more employers to pay the living wage,” she said.
“Across the country, there are many companies and organisations which could afford to do so, yet they continue to pay their staff poverty wages.
“If the recovery is to be one experienced by everyone in the UK, ending the squeeze on incomes and boosting pay – especially for those on low incomes – is essential. As this report shows there are many people in Britain who very definitely need a pay rise.”
According to the Living Wage Foundation, the current rate for a living wage in London is £8.80 an hour and £7.65 nationally.
Economic recovery dependent on living wage, say campaigners
More than five million workers will be unaffected by the economic recovery expected in the UK unless employers pay a living wage, a report has suggested.
