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Report says one in five workers earns less than the ‘living wage’
12:10pm Wednesday 4th September 2013 in News
One in five British workers earns below the so-called living wage, a report has revealed today.
The study comes as the Archbishop of York, Dr John Sentamu, is chairing the Living Wage Commission, established to promote pay which supports a basic but acceptable standard of living.
Using the most recent figures available, the report says 25 per cent of women and 15 per cent of men were paid below the living wage in April last year, when the benchmark was calculated as £7.20 an hour outside London and £8.30 in the capital.
In total 4.8 million Britons, 20 per cent of employees, were paid at a level below the rate deemed necessary for a basic standard of living, an increase from 3.4 million in 2009.
Unlike the minimum wage, it is up to employers to decide whether their staff are paid the living wage, which is currently £7.45 an hour or £8.55 in London.
The report by the Resolution Foundation think-tank found 77 per cent of employees aged under 20 earned less than the living wage.
Two-thirds of restaurant and hotel workers were paid below the benchmark, the study found.
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