One In Five UK Workers Earning Less Than “Living Wage”: KPMG

Nearly one-fifth of all hired staff in the U.K. are paid less than the nation’s standard ‘Living Wage’, claimed a study by KPMG on Monday, with some 47 percent of those surveyed expecting their finances to worsen over the next year.

Nearly one-fifth of all hired staff in the U.K. are paid less than the nation’s standard ‘Living Wage’, claimed a study by KPMG on Monday, with some 47 percent of those surveyed expecting their finances to worsen over the next year.

According to the Living Wage Foundation, the ‘Living Wage’ is a rate determined by the Centre for Research in Social Policy in the U.K., and the Greater London Authority in London, to highlight the minimum salary required for workers to maintain a basic standard of living.

But while the U.K.’s ‘Living Wage’ stands at £7.20 ($11.58) an hour (except for London which has a ‘Living Wage’ of £8.30 per hour), some 4.82 million British workers were earning less than this amount, especially as the country’s National Minimum Wage is set at just £6.19 an hour.

The Guardian reports that, to date, the U.K. government has resisted campaigns to increase the current minimum wage due to concerns over unemployment. The government also argues that the ‘Living Wage’ has been a poorly targeted measure for poverty.

Nevertheless Trades Union Congress (TUC) leader Frances O’Grady described KPMG’s findings as “shocking”; and called on more employers to voluntarily sign up for a scheme to pay the ‘Living Wage’.

[quote]”It is shocking that in this day and age one in five workers is still earning less than is needed to maintain a decent standard of living. The living wage is not a luxury and means that low-paid workers don’t have to make tough choices over whether they can afford the everyday things that most of us take for granted, such as their fuel bill or a winter coat for their children,” O’Grady said.[/quote]

“Many more employers could afford to adopt the living wage, and we hope that many more decide to pay it in the coming months. Now more than ever is the time for employers to put an end to poverty pay,” she added.

As one of the companies who have signed up for the ‘Living Wage’ scheme, KPMG warned that the nation’s failure to implement the ‘Living Wage’ would have an adverse effect on lowly-paid workers.

“This research really lays bare the extent of the problem of low pay in Britain. Times are difficult for many people, but of course those on the lowest pay are suffering the most,” told Marianne Fallon, head of corporate affairs at KPMG, to the BBC.

“Paying a living wage makes a huge difference to the individuals and their families and yet does not actually cost an employer much more.”

[quote]“We have found that the improved motivation and performance, and the lower leaver and absentee rate among staff in receipt of a living wage, means that the cost is offset,” Fallon added.[/quote]

Related: Rich Nations, Poor People: The Cause For Rising Poverty In The Western World

Related: Breaking the Inter-Generational Poverty Curse: Jeffrey D. Sachs

According to KPMG’s findings, Northern Ireland had the highest proportion of people being paid below the ‘Living Wage’ (24 percent), followed by Wales at 23 percent. The lowest proportion of under-paid workers was found in London and the south-east (16 percent); while the most vulnerable workers were service staff at bars and restaurants.

Some 90 percent of bar staff and 85 percent of waiters and waitresses failed to get as much as the ‘Living Wage’ and about 780,000 sales and retail assistants did not receive a ‘Living Wage’ as well.