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
If you’re struggling
We can help if you’re struggling to cover your living expenses. Get in touch:
- for budgeting help
- to check you’re getting the benefits you’re entitled to
- for advice on debt solutions
All our advice is free, so finding out what your options are won’t cost a thing. Some debt solutions are also free. For others, there’s a fee.
You can access our debt help 24/7 online. Or if you prefer to talk to someone on the phone, call us on 0161 518 8282. We’re here 8am to 8pm Monday to Friday and between 10am and 4pm over the weekend.
Rebecca Routledge
A qualified journalist for over 15 years with a background in financial services. Rebecca is Money Wellness’s consumer champion, helping you improve your financial wellbeing by providing information on everything from income maximisation to budgeting and saving tips.
Related posts
09 May 2024
The Bank of England has held interest rates for the sixth time in a row. Find out what this means for you.
01 May 2024
Prescriptions have increased to £9.90. If you’re finding the cost unaffordable, find out what help is available
30 Apr 2024
Fines for kids missing school are set to increase from August which has led to thousands of parents signing a petition to have the legislation relaxed
30 Apr 2024
Workers will see the cut to National Insurance in their pay packets from today, but more low-paid workers will start paying tax. Find out what the changes means for you