Lowest paid must receive living wage, says Sentamu

Millions of workers will not benefit from the economic recovery unless they are paid a living wage, according to a new report.

A commission chaired by Archbishop of York Dr John Sentamu warned that spiralling living costs and stagnating wages were creating a “double squeeze” on the lowest paid.

The report, the first produced by the independent commission, said over five million workers were paid less than the so-called Living Wage, set at £7.65 an hour (£8.80 in London), compared with the adult national minimum rate of £6.31.

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The number of workers paid below the higher rate increased by nine per cent, or 420,000, over the past year, it was found.

Housing costs have tripled in the last 15 years while energy bills have rocketed by 88 per cent in the past five years, research by the commission showed.

Low-paid workers are hit hardest by rising prices and stagnating wages, the report said.

Dr Sentamu said: “The idea of making work pay is an empty slogan to millions of people who are hard-pressed and working hard, but find themselves in a downward social spiral.

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“They are often in two or three jobs just to make ends meet. Meanwhile the UK taxpayer picks up the bill in tax credits, in-work benefits and decreased demand in the economy.

“With the economy showing signs of recovery, employers that can pay a Living Wage must do so. They should choose between continuing to make gains on the back of poverty wages, or doing the right thing and paying a fair wage for a hard day’s work.”

The report said: “Britain has a low pay problem and it is getting worse. While Britain’s economy begins a nascent recovery, this report shows that there is a very real danger that the nation’s increased growth will not reach the lowest paid.

“One in every five workers are paid less than they need to maintain a basic, but socially acceptable standard of living.”

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