According to research from the Resolution Foundation, 4.8 million workers in the UK are earning less than the ‘living wage’.
The living wage is the term used to describe the amount of money a worker needs to cover the basic costs of living.
The living wage is set at £7.45 outside of London and £8.55 in the capital.
Although employers are legally required to pay at least the minimum wage, they are not obliged to pay the living wage.
The research showed that 25% of women and 15% of men were being paid less than the living wage in 2012. It also showed that 77% of employees under 20 and two thirds of restaurant and hotel workers were being paid less than the living wage.
Economist Matthew Whittaker said: “For most of the working population real wages have been flat or declining for many years and as a result more and more people have dipped below the level of the living wage.
“Britain has a sorry story to tell on low pay. Only a handful of our close competitors do worse and the large majority have much lower rates of low pay – sometimes half as much.”
With so many people earning less than the living wage, debt issues can become a real worry.
If you’re struggling with debts, there are solutions available to you.
At The Debt Advisor we can provide advice on all kinds of debt solutions such as Debt Management Plans (DMP), Individual Voluntary Arrangements (IVA) and Bankruptcy.
Call today on 0800 0851 825 to speak with one of our advisors. If you’re calling from a mobile, you can reach us on 0161 868 2500. Alternatively you can fill in the contact form at the top of the page and we’ll call you!
The Debt Advisor are members of The Debt Resolution Forum and are also regulated by The Financial Conduct Authority no 606669.