Almost five million British workers paid less than the living wage

http://www.guardian.co.uk/society/2012/oct/29/five-million-britons-living-wage

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One in five British workers and their families are likely to have inadequate standards of living because they are being paid less than the living wage, according to a study.

The research by the consultants KPMG found that 4.82 million workers have to survive on less than a living wage,currently £8.30 an hour in London and £7.20 in the rest of the country. The TUC described the findings as "shocking".

The government has resisted campaigns to increase the current minimum wage of £6.19 to living wage levels, fearing that it would hit employment figures. It argues that it is a poorly targeted poverty measure.

But an increasing number of employers, notably the London mayor Boris Johnson, have introduced a living wage rate for their staff. According to KPMG's study, the voluntary measure has helped 10,000 employees, and redistributed £96m to the lowest paid.

The study, launched in advance of next week's Living Wage Week, found that Northern Ireland has the highest proportion of people earning below the living wage (24%), followed by Wales at 23%. The lowest proportion of sub-living wage earners are in London and the south-east, both at 16%. It found that at least 70% of cleaners, kitchen staff and waiters and waitresses are were paid less than the living wage.

Some 41% of low paid workers surveyed said that their finances are worse now than they were just one month ago.

Nearly half (47%) expect their finances to be in a worse condition in a year's time than now, slightly more than the 43% of those earning above the living wage. And nearly a quarter (23%) feel that their job security has worsened, compared with 16% of those earning above.

Frances O'Grady, who becomes the TUC's leader in January, said: "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."

She urged more employers to pay a living wage. Marianne Fallon, of KPMG, one of the employers to sign up to the scheme, said: "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.

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

All three main party leaders expressed support for the Living Wage campaign before the last election without committing to implementing it.