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
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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.
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