Wage slavery

More than a third of people who earn less than the “real living wage” have reported regularly skipping meals to save money, according to a report by the Living Wage Foundation.

The real living wage (RLW) is voluntarily paid by more than 3,500 UK employers, is based on what people need to live a decent and healthy lifestyle as determined by a panel of experts. It is currently £8.45 across the UK and £9.75 in London. It differs from the government’s national living wage, which is £7.50 an hour for those 25 or older.

A poll carried out for the Living Wage Foundation also found that more than a third of people earning less than this had topped up their monthly income with a credit card or loan in the last year, while more than one in five reported using a payday loan to cover essentials. More than half – 55% – had declined a social invitation due to lack of money, and just over half had borrowed money from a friend or relative.

“This is the sad reality of life for people who are in working poverty in the UK,” said Katherine Chapman, director at Living Wage Foundation. “We’ve seen the increasing use of food banks and other worrying trends. That’s why it’s more important than ever that employers are showing leadership and standing up and making a public commitment to paying the living wage.”

KPMG found that more than one in five people in the UK are still earning below the RLW. While the number has dropped by 100,000 to around 5.5 million since last year, the first reduction in five years, it means a million more people earning below the RLW than in 2012. Part-time workers are particularly vulnerable to low pay. Around 3.1 million part-time employees earn less than the RLW compared with 2.4 million full-time workers, according to KPMG. The KPMG research found that a deep gender divide continues to operate. One in four – 26% – of women earn less than the RLW, compared with 16% of men.

Almost three-fifths of those earning below the RLW said they had experienced a sharp increase in the cost of living. There is also acute regional variation. Some 26% of workers in Northern Ireland earn below the RLW, the highest proportion in the UK, and a quarter of workers in the East Midlands, Yorkshire and Humber, Wales and the West Midlands are also earning below the threshold.