Data from the Office of National Statistics shows that the number of low-paid jobs in the sector increased in 2024.
- 12% of jobs in the UK’s not-for-profit sector are paid less than the real Living Wage
- Rates of low pay in the not-for-profit sector are more than double rates of low pay in the public sector, which were at 5% in 2024; but lower than in the private sector, where rates of low pay were at 20%
- This is an increase from last year’s figures, when 10% of jobs in the not-for-profit sector were paid below the real Living Wage
- Over 2,000 UK charities are now accredited with the Living Wage Foundation, including Oxfam, Shelter, Macmillan and WWF
- Over 80 Funders are now accredited Living Wage Funders, and support charities to pay the real Living Wage through their grantmaking processes
New analysis of the latest Annual Survey of Hours and Earnings from the Office for National Statistics (ONS), by the Living Wage Foundation, reveals that the number of UK jobs in the not-for-profit sector paid below the real Living Wage rose to 286,000 in the last year.
This is in alignment with rising low pay across every region and nation and virtually every industry in the UK. Nearly 1 in 6 (16%) UK jobs overall are now paid below the real Living Wage.
The real Living Wage, as set by the Living Wage Foundation, is the only wage rate based on the cost of living. It is currently £12.60 in the UK and a higher rate of £13.85 in London. This is different from the government’s ‘National Living Wage’ which is the legal minimum for workers 23 and over. For a full-time worker, that represents £2,262 more than someone earning the government’s National Living Wage. A worker on the London Living Wage would be £4,699.50 better off than someone on the National Living Wage.
The region with the highest rate of low paid not-for-profit jobs is the North East, where 18% of third sector jobs are paid below the real Living Wage. The region with the lowest proportion of low-paid not-for-profit jobs is the South East, where 9.5% of third sector jobs are paid below the real Living Wage. Charity roles paid below the real Living Wage can include care workers, charity shop staff and entry-level workers. A CharityJob survey earlier this year showed that one in four entry level charity jobs is paid below the real Living Wage.
| Region | % of low paid jobs |
|---|---|
| North East | 18 |
| East Midlands | 15 |
| East | 14 |
| North West | 14 |
| Yorkshire and the Humber | 14 |
| West Midlands | 13 |
| South West | 13 |
| Wales | 12 |
| London | 11 |
| Scotland | 11 |
| South East | 9.5 |
Research published in 2024 by the Living Wage Foundation found that despite inflation easing, millions of low paid workers are still being impacted by persistently high prices and inadequate pay. 2 in 5 workers paid below the real Living Wage used a foodbank in the last year, with 28% relying on them at least once a month. One in three have skipped meals for financial reasons, 31% have fallen behind on household bills and 24% couldn’t afford to heat their homes. 67% of low paid workers said that being paid less than the real Living Wage has negatively affected their mental health.
In addition to the 2,000+ accredited Living Wage employers in the third sector, there are over 80 Living Wage Funders who commit to supporting their grantees to pay the real Living Wage. There are also over 200 Living Hours employers, committed to ensuring their workers have security of hours. There are over 70 Living Pensions employers in the third sector, who are committed to ensuring their workers can afford a decent standard of living in retirement.
Katherine Chapman, Executive Director of the Living Wage Foundation, said:
“No-one wants their workers to be forced to skip meals, but low pay in the third sector means that many charities may be perpetuating the very problems that they were set up to solve. Everyone deserves to be paid enough to afford decent standard of living.
“Charities that are accredited as Living Wage Employers tend to see better retention, recruitment and worker wellbeing, and they do better at attracting people from all backgrounds into the sector. Staff from working class backgrounds continue to be underrepresented in the charity sector, and the real Living Wage helps to ensure that no one has to turn down a job because they don’t have access to savings or to financial help from family.
“The support of our 80+ Living Wage funders has been crucial in enabling charities to become Living Wage employers. We’d encourage more grant-makers to consider becoming Living Wage Funders, and structure fair pay into their grant-making processes.”
Rob Mills, CEO of Walton Charity, a Living Wage Funder, said:
"At Walton Charity, our commitment to fairness and equity extends not just to our service users, but also to our team and the wider community.
"The services which we and the wider third sector offer are more vital than ever, as need continues to rise. At our foodbank alone we have seen a 40% increase in demand since 2022, with the number of food parcels we distribute topping over 5,300 this year: the highest on record.
"We have been an accredited Living Wage Employer for a number of years, but recently became an accredited Living Wage Funder as well. As a place-based charitable foundation in one of the most expensive parts of the country, it is important for us to support our grantees and local partners to pay the real Living Wage to their workers."