Millions of UK workers paid less than the ‘living wage’

A new study by major accountancy firm KPMG has suggested nearly six million workers in the UK are paid less than the living wage.

Data from the survey showed that the most likely people to earn under the wage are part time workers, females and the young, and that the number of people earning under the figure has gone up for three years consecutively.

The living wage, which is promoted by the Living Wage Foundation, is currently £7.85 an hour and £9.15 in London. It is neither compulsory or a legal requirement that employers pay it.

The wage is much higher compulsory national minimum wage, and more than the new national living wage announced by the government, due to come into force next April.

Living wage vs. Minimum Wage

• The living wage is an benchmark figure which is not a legally enforceable minimum level of pay. It is currently £7.85 and £9.15 in London
• The national minimum wage is the mandatory minimum level of pay set by the business secretary each year on the advice of the Low Pay Commission. It is currently set at £6.70 an hour for adults aged 21 and over, and £5.30 for those aged 18 to 20
• In the last Budget the government announced a new compulsory National Living Wage will come into force from April 2016. It will be paid to workers aged 25 and above. It will be set initially at £7.20 an hour and is intended to exceed £9 an hour by 2020