Over 2 million women earning below real living wage

Figures compiled by the Living Wage Foundation show that 14% of women who are in work are paid below the real Living Wage, compared to 9% of men (1.4 million).

The charity - an organisation which aims to persuade employers to pay a living wage - says women have been harder hit by the cost of living crisis because they tend to earn less.

The real living wage is calculated annually based on the costs of the basics required for a decent standard of living. The rate is currently £10.90 an hour across the UK, and £11.95 in London.

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It is voluntarily paid by more than 12,000 UK employers, including Aviva, Lush, Burberry, Nationwide, KPMG, Oxfam and Nestle among thousands of others.

The national living wage, which is set by the government, is £9.50 per hour for those aged 23 and over, £9.18 for those aged 21–22, £6.83 for ages 18–20, £4.81 for under-18s and £4.81 for apprentices.

The study showed that overall, 60% of all jobs that pay below the real living wage are held by women.

It also found that women are more likely to be on zero-hours work contracts, representing 13% of female and 9% of male workers.

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Women are also less likely to be paid for a shift when it is cancelled. More than quarter of women on such contracts said they were not paid anything for a cancelled shift, compared with 17% of men.

Three-quarters of women felt that their pay increased their anxiety levels, compared with 65% of men, while more women than men said their pay reduced their quality of life.

Katherine Chapman, Director of the Living Wage Foundation, said: "This year’s International Women’s Day 2023 is focused on equity - the sticky floor of low pay and precarious work is holding women back, true equity needs to start with a real Living Wage.   

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"It has been heartening to see record levels of employers signing up the real Living Wage and Living Hours in this past year. We’re encouraging all businesses who can to join our network of 12,000 Living Wage employers.”  

Jenny Baskerville, Head of Inclusion, Diversity and Equity at KPMG UK and Chair of the Living Wage Advisory Council, said: “We’ve certainly come a long way in tackling low pay in the UK, but today’s statistics show there is still more to be done. This International Women’s Day, the 2 million women in the UK who are earning below the real Living Wage must be front of mind.   

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“Over 12,000 businesses across the UK are paying the real Living Wage, and it’s never been more vital for others to follow in their footsteps given the economic climate. 

"Paying a real Living Wage isn’t just the right thing to do, but businesses can also benefit from improved recruitment and retention, improved staff morale, rising service standards, as well as increased productivity. 

"When we collectively work to ensure that good work is at the heart of the labour market, we will all benefit from a stronger, more compassionate and equal society.”