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Media - key information and statistics

Scale of low pay 

(Source: link, 2026) 

  • 4.4 million jobs, or 14.6% or 1 in 7 jobs were paid below the real Living Wage in April 2025.
  • The proportion of jobs paid below the Living Wage is lower today than at any point in the 2010s. However, it’s higher than in 2022 or 2023, following the biggest rise in the proportion of jobs paid below the Living Wage in the year to April 2024.
  • Northern East England is the area with the highest proportion of low paid jobs, Scotland is the area with the lowest proportion of low paid jobs. 

Groups particularly affected by low pay 

Part-time workers: 

  • In 2025, part-time employees were over three times more likely to be low paid than full-time employees, with 30% (2.5 million) of part time jobs being paid below the real Living Wage, compared to 9% (1.9 million) of full-time jobs. Part-time jobs accounted for over half (56%) of all jobs paid below the real Living Wage in 2025.

Women: 

  • In 2025, women were a third more likely to be low paid than men, with 17% (2.5 million) of jobs held by women paid below the real Living Wage compared to 12% (1.8 million) of jobs held by men. Jobs held by women account for over half (59%) of low paid jobs.

Workers from an ethnic minority group: 

  • In 2023, 17% of workers from a racialised community earned below the Living Wage, compared with 13% of all workers.
  • In 2023, all ethnic groups other than Chinese workers (12%) had a higher rate of low pay than white workers (12%). Bangladeshi workers had the highest rate of low pay by far, at 29%.
  • The rate of low pay for other groups of workers is: 23% for workers from any other Asian background, 22% for Pakistani workers, 17% of Black/African/Caribbean/Black British workers, 17% of workers from other ethnic groups, 16% of workers from mixed/multiple ethnic groups, and 14% of Indian workers. (LFS data, 2023). 

Regions: 

  • Rates of low pay continue to vary significantly across geographical areas. The areas with the highest proportion of jobs below the real Living Wage were the North East (18.8 %), Northern Ireland (17.3 %), and the East Midlands (17.2 %). The areas with the lowest proportion of jobs below the real Living Wage were Scotland (11.3 %), the South East (12.2 %) and London (13.3 %)

Industries: 

  • Rates of low pay vary significantly across industries, but hospitality has remained the industry with the highest proportion of low pay since records began in 2012. In 2025, more than half (53%) of hospitality jobs were paid below the real Living Wage. 
  • Other industries with above average levels of low pay in 2025 include arts, entertainment and recreation (29%) and retail and wholesale (29%).
  • The industry with the highest number of jobs paid below real Living Wage is the wholesale and retail sector, with more than a million low paid jobs in 2025.  

What’s the impact of low pay?  

Life on Low Pay - 2025, link

  • 12 per cent of low-paid workers have no money left over each week or find themselves further in debt after paying for basics.
  • Almost 6 in 10 (59 per cent) skipped meals, turned off the heating, fell behind on bills or took out a pay-day loan in the past year to cover essentials.
  • Over 2 in 5 have used a foodbank (42 per cent) in the past year.
  • More than 2 in 5 (45 per cent) are not confident they could afford an unexpected, necessary cost of £200. 
  • Some groups are disproportionately affected. For example, though 24 per cent of all-low paid workers have no savings, this rises to 27 per cent of women, 31 per cent of those with qualifications up to and including A-level, 35 per cent of renters, and 36 per cent of disabled workers.
  • 2 in 5 (41 per cent) report that their level of pay negatively affects their overall quality of life.
  • 2 in 5 (42 per cent) report that their level of pay negatively affects their mental health, and 1 in 3 (34 per cent) report that it negatively affects their physical health.
  • Almost 3 in 10 (29 per cent) report that their level of pay has a negative impact on their relationships with close friends and family.
  • Almost two-thirds (65 per cent) think the real Living Wage would positively affect their overall quality of life.  

How can the Living Wage address these problems? 

How many people benefit from the Living Wage 

  • There are over 16,000 accredited Living Wage Employers (October 2025).
  • 490,000 workers receive pay rises every year thanks to the real Living Wage (October 2025).
  • We’ve put £4.1bn back into the pockets of workers since the campaign began over 20 years ago.
  • In 2025, 1 in 7 workers, or over 4 million workers in the UK work for Living Wage Employers.

The real Living Wage vs the National Living Wage 

  • For a full-time worker, the real Living Wage (at £13.45) is worth £1,443 more a year than the current National Living Wage (at £12.71). This is equivalent to three months’ worth of food or transport costs.
  • For a full-time worker, the London Living Wage (at £14.80) is worth £4,076 a year more than the National Living Wage (at £12.71). This is equivalent to over a year’s worth of food or transport costs (13 months).
  • The real Living Wage as an annual salary is £26,228 and the London Living Wage as an annual salary is £28,860 (at 37.5 hours a week).  

How the real Living Wage improves people’s lives 

(Source: link, 2025).

  • The majority of low-paid workers (81 per cent) think that moving to a Living Wage would have a positive impact on their quality of life.
  • People paid the Living Wage are more likely than low-paid workers to say their job has a positive impact on their physical health (40 per cent vs 24 per cent) and mental health (36 per cent vs 22 per cent). This pattern holds for people with existing long-term health conditions. 
  • Those paid the Living Wage are more likely to be satisfied – and less likely to be dissatisfied – with every aspect of a job we asked about. The aspects with the biggest difference in satisfaction rates are level of pay, career advancement opportunities, employer pension contributions and employee benefits. 
  • People paid the Living Wage are also more likely to associate positive emotions with their jobs. Over three quarters of those paid the Living Wage had felt enthusiastic at least sometimes due to their job over the past few weeks, compared to 68 per cent of low-paid employees. 
  • Overall, three quarters of workers paid the Living Wage are satisfied with their current job, dropping to 61 per cent for low-paid workers. A quarter of workers (25 per cent) paid the Living Wage plan to stay in their current job for less than a year, compared to 29 per cent paid less than the Living Wage.

Impact of the real Living Wage on businesses 

(Source: link, 2021) 

  • 94% of Living Wage businesses say they’ve benefited since accrediting.
  • 87% say it’s improved the reputation of the business.
  • 66% say it’s helped differentiate them from others in their industry.
  • 64% say it improved relations between management and staff.
  • 62% of employers say paying a real Living Wage has improved recruitment of employees.
  • 60% of employers say paying a real Living Wage has improved retention of employees.
  • Being offered the Living Wage is a clear draw for low-paid workers considering other options. If their current employer decided to pay the Living Wage, 65 per cent say they would be more likely to stay. If a similar job came up at another employer which paid the Living Wage, three quarters said this pay offer would make them more likely to take the job. (Source: link). 

Impact of the real Living Wage on the economy 

  • There would be a £1.6bn boost to UK economy if 50% of low-paid workers were moved onto the real Living Wage. (Source: link)

 Living Hours Data 

  • 269 accredited Living Hours Employers (October 2025).
  • Over 80,000 workers benefit from working for Living Hours Employers (October 2025).
  • 6.1m workers in the UK are in insecure work, with 3.4m being in low paid insecure work in 2023. This amounts to 20% and 10% of workers in the UK respectively. (Source: link).
  • 84% of workers whose hours vary have been called into work with less than four weeks' notice and 55% have been called in with less than one week’s notice. (Source: link, these findings pool polling data from 2021 to 2023).
  • 26% of those working variable hours experienced unexpected shift cancellations and 87% who experienced unexpected shift cancellations received less than their regular pay when shifts were cancelled (25% received no pay at all). (Source: link, these findings pool polling data from 2021 to 2023).
  • When asked to rate different job qualities by importance, 87% of workers said having stable pay from week to week was important – placing it above all other job qualities we asked about, including salary. 83% also said job security and a stable number of hours was important, and 82% said having enough hours per week was important. (Source: additional data from polling carried out for this study). 

 Living Pension Data 

  • 103 accredited Living Pension Employers (February 2026). 

Retirement planning and expectations 

  • 4 in 5 workers were not saving at levels likely to meet basic needs in retirement in 2022. (Source: link).
  • Only 1 in 20 low-paid workers were saving at levels likely to meet basic needs in retirement in 2022. (Source: link).
  • 9% of UK adults decreased or stopped their personal pension contributions in the previous six months, jumping up to 17% amongst those earning below the real Living Wage in 2024. The main reason people cited for decreasing or stopping their contributions was the cost-of-living. (Source: link).
  • 7 in 10 UK adults said they need to do more planning for retirement, rising to 74% amongst those earning below the real Living Wage. (Source: link).
  • Over half of UK adults do not know whether they are saving enough for retirement, rising to 65% for those earning less than the real Living Wage. (Source: link).
  • Over half of UK adults earning below the real Living Wage do not feel they are saving enough to meet their basic needs in retirement. (Source: link).
  • 62% of workers say that the level of employer pension contributions offered is important in determining whether a job is a ‘good job’. (Source: additional data from polling carried out for this study). 

 Impact of living on a low pension 

Source: link  

  • 54 per cent of people on a low pension struggle to keep up with bills and credit commitments.
  • 35 per cent rely on at least one additional source of income, such as benefits, on top of State Pension, workplace pension and savings.
  • 40 per cent report struggling more now than before they retired, with a further 36 per cent reporting no change since retiring.
  • Perhaps surprisingly, 42 per cent of people on a low pension self-identified as middle or higher earners during the bulk of their working lives. 35 per cent classified themselves as low earners.  
  • People renting, people with health conditions and people living alone are struggling disproportionately. For example, 40 per cent of people living alone are in debt, falling to 25 per cent of people living with a partner.
  • Since retiring, 48 per cent of people on a low pension have reduced spending on entertainment and hobbies, 45 per cent have reduced spending on leisure travel and holidays, and 43 per cent have reduced spending on gifts and donations.
  • 1 in 5  people on a low pension say their level of income is negatively affecting their mental health (22 per cent). 1 in 4 say it is negatively affecting their level of anxiety (26 per cent) and their sleep quality (25 per cent).   

Impact of the Living Pension for employers and employees 

Source: link 

  • 71% of accredited employers made changes to meet the standard.
  • 43% of employers said they expected to see a positive impact.
  • 11% had already observed improved satisfaction among staff.
  • 35% of employers said they expected to see more employee enquiries.
  • 22% had already observed a noticeable uptick in enquiries.
  • 82% of employees said an employers’ pension scheme was important when considering a new job.
  • 38% of employees reported feeling confident that their pension contributions will be enough for retirement.
  • 32% of employees surveyed reported an increased understanding of how much they receive in pensions contributions. 

What is the real Living Wage?    

The Living Wage Foundation’s real Living Wage remains the only UK wage rate independently calculated based on the cost of living, rising annually based on living costs. It gives employers the confidence they are paying a wage that meets everyday needs. The real Living Wage applies to all workers over 18 – in recognition that young people face the same living costs as everyone else. This year’s rates are £13.45 across the UK, and £14.80 in London. These figures are calculated annually by the Resolution Foundation and overseen by the Living Wage Commission, based on the best available evidence on living standards in the UK and in London.  

Over 16,000 accredited employers choose to pay the real Living Wage on a voluntary basis. The campaign for a real Living Wage has secured over £4.1bn of pay rises for low paid workers and made a profound difference to millions of lives around the UK since it began more than 20 years ago. It enjoys cross party support. 

About the Living Wage Foundation      

The Living Wage Foundation is the organisation at the heart of the independent movement of employers, people and communities who are driving up employment standards so that everyone has a decent standard of living now and in the future. Through our Living Wage, Living Hours and Living Pension accreditations, we champion and celebrate employers who make an ongoing commitment to do the right thing by their employees by providing the security and freedom they need to thrive. The Living Wage Foundation is part of Citizens UK; the UK’s biggest, most diverse and effective people powered alliance. Our accreditation schemes make change on the issues that matter. 

For more information, please see our website. 

What about the Government’s national living wage?   

In July 2015 the Chancellor of the Exchequer announced that the UK Government would introduce a compulsory ‘National Living Wage’ (NLW). This new government rate was a new minimum wage for staff over 25 years old. It was introduced in April 2016 and the rate is £12.71 as of April 2025. From April 2024 it applies to everyone over 21 years old.   

The rate is different to the Living Wage rates calculated by the Living Wage Foundation. The government rate is based on median earnings, while the Living Wage Foundation rates remain the only ones calculated according to the cost of living in London and the UK. A full-time worker paid the £13.45 real Living Wage will receive £1,443 in additional wages annually compared to the current Government minimum. For a full-time worker in London this figure rises to £4,076. 

About our Living Hours Scheme:  

The Living Hours accreditation builds on the foundation of the Living Wage, ensuring that everyone has the secure working hours they need to thrive.  

For over 20 years we have championed decent wages, working with over 16,000 employers, securing over £4.1 billion in pay rises for low paid workers and changing millions of lives. But high levels of insecure work are trapping millions of people in poverty, which makes it impossible to plan a life. Our Living Hours accreditation sets the standard for what good work looks like, ensuring all employees have the security they need to live with dignity. 

Living Hours accreditation guarantees workers with contracts that reflect actual hours worked, at least sixteen hours work a week unless the worker requests otherwise, and with at least four weeks’ notice of shifts with guaranteed payment if shifts are cancelled within this notice period. 

For more information on the Living Hours scheme, visit: https://www.livingwage.org.uk/living-hours    

About our Living Pensions scheme: 

The Living Pension accreditation provides an annual savings target for Living Wage Employers to provide workers with financial security now and in the future.  

Everyone should be able to afford to live with dignity in retirement. But with an ageing society, millions in the UK will end up in pension poverty, struggling to make ends meet when they retire. With 4 in 5 workers not saving enough for an acceptable standard of living in retirement, and over 50% worried they will never be able to retire, today’s living cost crisis is tomorrow’s pensions crisis.  Employers have a vital role in ensuring their employees can build up enough savings to live with dignity in retirement. The Living Pension accreditation builds on the success of the Living Wage and sets an annual pensions savings target that employers can have confidence in, making it easier to do the right thing by their employees. 

To become a Living Pension Employer, organisations must provide a Living Pension savings level, using either a cash or percentage target. The annual savings target is £3,150, or 12% of a full-time real Living Wage workers’ salary, with the employer paying £1,840, or 7%. 

The Living Pension standard has been developed with guidance from the Living Pension Steering Group, made up of industry bodies, employers and union representatives, and received financial support from Abrdn Financial Fairness Trust.  

For more information on the Living Pension scheme, visit: https://www.livingwage.org.uk/living-pension  

What about the Government’s auto enrolment pension?   

The introduction of auto enrolment has seen more workers saving for retirement. But, research by the Resolution Foundation shows that the government’s minimum levels are not enough to meet basic everyday needs in retirement.  

Under automatic enrolment, a Living Wage employee working 37.5 hours per week would be £1,548 a year short of what research shows us workers need to be saving.