The Economic Impact of the Living Wage

Today, 4.4 million jobs are paid less than the real Living Wage. In research led by Cardiff Business School, we investigate the knock-on effects if half of those jobs were given a pay rise to the real Living Wage.  

Already, almost half a million people in work are paid a real Living Wage because their employer has joined the Living Wage campaign, with more than £4 billion put back into workers’ pockets as a result. This report explores the wider economic effects of paying more people a decent wage.  

Across the UK, if half of low paid jobs were given a pay rise to the real Living Wage, the total economic dividend could be over £1.6 billion in 2026. Every area of the UK would benefit, with some areas – those with a higher share of low paid jobs today, and those in London where the London Living Wage provides a bigger pay rise – seeing the biggest impacts.