Most low-paid workers have taken out payday loan to cover essentials
New research suggests that three in five low-wage workers skip meals, fail to heat their homes or take out payday loans to cover basic needs.
The Living Wage Foundation said its survey of 2,000 workers showed the “devastating impact” of low wages on people’s lives.
Three in five survey respondents said they had to regularly skip meals in the past year because of their pay levels, were unable to heat their homes, fell behind on bills or took out a payday loan to cover basic needs.
Two in five people said they had to use the food bank; this proportion has risen to more than half of low-wage workers with dependent children.
The research was based on a survey of workers in London who were paid below the voluntary so-called real living wage of £12.60 and £13.85 per hour.
A low-wage worker in one of the focus groups that formed part of the research said: “I’m having a really hard time balancing bills, rent, food for my kids and myself. There’s always some sort of sacrifice involved.”
A quarter of those surveyed said they had no savings at all, while a fifth said they had less than £10 left over each week after paying for essentials such as food, housing costs and energy.
Katherine Chapman, chief executive of the Living Wage Foundation, said: “Today’s research shows the harsh reality for workers who are paid below the real living wage and are forced to make impossible choices between heating homes, feeding their families or paying the bills.
“Despite difficult economic conditions, it is encouraging to see more employers – more than 16,000 – across all sectors and sizes joining the living wage movement. They know that when staff are paid a wage that reflects their cost of living, they and the organizations they work for will thrive.”
Katie Hood, lead community organizer at Colchester foodbank, said: “The report reflects the harsh reality of life for low-paid workers we see every day at Colchester foodbank.
“The harmful impact of low wages impacts all areas of our community’s well-being. The findings make clear that the stark reality of rising costs of living, limited access to real living wage jobs, and widening economic inequality is leaving too many people behind.”
