New research reveals significant financial struggles among UK workers earning below the real Living Wage.
- Approximately 42% of these workers are left with less than £10 each week after covering essential expenses.
- An unexpected £850 expense is unaffordable for 58% of low-wage workers, posing a severe financial threat.
- Many report detrimental impacts on their mental health, including increased anxiety and disrupted sleep.
- The call for Living Wage reforms is growing, as new rates for 2023-2024 will soon be announced.
New findings from the Living Wage Foundation uncover the dire financial conditions faced by 42% of workers earning below the real Living Wage, leaving them with less than £10 each week after necessary expenditures such as housing, food, and transport. This study, conducted by Survation, interviewed 2,000 workers in this bracket, highlighting the severity of economic hardship in the UK.
A crucial element of the research indicates that 58% of workers earning below this threshold are unable to meet an unexpected essential expense of £850, an amount equating to just over two weeks’ wages at the current National Living Wage. This reality underscores a precarious financial security net for millions.
Moreover, the survey reveals that financial struggles are impacting the psychological well-being of many workers. Findings show that 67% attribute negative mental health impacts to their inadequate pay, with 65% experiencing poor sleep, and 53% noting effects on personal relationships.
The research comes at a critical time, with announcements for the 2023-2024 Living Wage rates imminent. The real Living Wage, unlike the government’s minimum, is based on living costs and voluntarily paid by over 15,000 accredited employers.
In light of these challenges, 52% of respondents emphasised an increase in pay as the most vital support their employers could provide. Higher wages could substantially reduce financial stress, improving mental, sleep, and physical health, thereby boosting overall quality of life.
Prominent voices like Katherine Chapman, Director of the Living Wage Foundation, stress the necessity of the real Living Wage, asserting its role in enabling families not just to survive, but to thrive by cushioning unforeseen expenses and improving daily living standards.
Testimonials from workers like Sam and Brett Mendell from Thomas Kneale & Co exemplify the tangible benefits of earning a real Living Wage, showcasing improvements in personal health, fiscal stability, and job satisfaction.
Kristina Maculska attests to the positive effects of the real Living Wage within the London Stadium, highlighting its importance in ensuring financial security and workplace motivation in the face of high living costs.
The pressing need for Living Wage reforms is evident as numerous workers are trapped in financial precarity.
