50% of low-paid workers are worse off than they were a year ago, finds survey by Living Wage Foundation

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We are a living wage employer logo50% of  low-paid workers are worse off than they were a year ago, finds survey by Living Wage Foundation:  A survey of people who are in jobs that pay less than the real Living Wage has found that half are worse off than they were a year ago, with almost two-thirds attributing this to the cost of living crisis.

The Life on Low Pay survey sought to track the real-life impact of being paid less than the real Living Wage –  the only UK wage rate based on living costs. 

The research findings were published in September 2023, highlighting that although there has been a general ease in inflation over the last 12 months, people who are paid less than the real Living Wage are still experiencing higher levels of financial hardship than before the cost of living crisis.

The research also found that almost two-fifths of respondents are regularly going without food to help make ends meet with the same proportion reporting falling behind on household bills (39% each). Around a third of people said they have been unable to heat their homes for financial reasons, with 27% saying they have fallen behind with their rent or mortgage payments. 

In order to help ease their financial situation, more than half the respondents polled said they have taken on more work in the last year because of the cost of living crisis (55%), with more than a quarter of respondents saying after they've paid for essentials and bills they have no money left to see them through the rest of the week or month, while 42% said they had less than £30 of disposable income left over per week. A further 13% reported having less than £10 left per week after making essential payments. 

Of those who have taken up extra work, 46% said they have taken on more hours at their existing workplace, while a third have had to find a second job (32%). 

Many respondents reported having to use footbanks over the last year (60%) with a third saying they have increased their use of foodbanks in the past 12 months

Respondents were also asked about how being paid in-line with inflation might impact them with almost two-thirds saying it would improve their overall quality of life (65%) while 63% said it would improve their levels of anxiety and mental health. Slightly fewer said it would improve their relationships with close friends and family while quality of sleep (61%), physical health (58%) relationship with significant others (56%) and relationships with children (54%) were also cited. 

Concluding the Life on Low Pay report accompanying the survey, the Living Wage Goundation said: “Even though the rate of inflation is coming down, any amount of inflation means a further increase in prices. It is therefore more important than ever for workers to receive pay that increases in-line with the cost-of-living to ensure they can meet their everyday needs.”



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