Cost-of-living crisis ‘not over for low-paid workers’

Inflation may be easing but the cost-of-living crisis is far from over for low-paid workers, according to a new report.

Over 3.5 million workers earn less than the real living wage. This is a voluntary rate set by the Living Wage Foundation. The real living wage is £11.95 in London and £10.90 across the rest of the UK.

The report’s findings

The new research carried out by the Living Wage Foundation found among workers earning less that the real living wage:

• 60% have used a foodbank in the past year
• 50% are worse off than a year ago
• 39% regularly skip meals
• 39% are behind on household bills
• 32% can’t afford to heat their homes
• 27% are behind with their rent or mortgage payments
• 21% have taken out a payday loan to cover the essentials

The effects of low pay on wellbeing

The report also looked at the effects of earning less than the living wage on people's wellbeing:

• 52% said it had negatively affected their mental health
• 50% said it had reduced their quality of life
• 39% said it had damaged their relationships with friends and family

Carolina, a cleaner and recruitment assistant who has recently started work with an employer paying the living wage, said:

“It was quite difficult for me when my income was low. I had no money left over for savings, the gym, or entertainment. To save money on high rent, I had to share a tiny apartment with my family. Since I began [my new job], my quality of life has greatly improved. I relocated to a new apartment, had enough cash to pay my expenses, and can now go out on the weekends.”

New living wage

This report comes a month before the Living Wage Foundation announces new rates for 2023-24

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