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27/11/2013 - British Workers stuck in low pay

Nearly three out of four workers stayed trapped on low pay over the last decade, a new study called Starting out or getting stuck? has found. The startling report comes from the Resolution Foundation think-tank.

 

Of the 4.7 million Britons who were low paid in 2002, nearly half (46%) drifted in and out of low pay while over a quarter failed to see any improvement at all over the next 10 years. Women were more likely to be stuck on low pay while people in the North East were the most likely to fail to improve their earnings. 

 
Fewer than one in five workers managed to increase their earnings. This shows that low pay is a "persistent" problem in Britain. The Resolution Foundation's report comes on top of recent research from XpertHR indicating that any pay rises this year will be low and below-inflation, resulting in pay packets continuing to be eaten away. 
 
Gavin Kelly, chief executive of the Resolution Foundation, said: "Living on low pay in 2013 is tough, but being stuck on it for years on end is harder still.
 
"This report shines a light on the persistent nature of low pay for millions of workers and shows that women, those in regions such as the North East, the East Midlands and Wales, and people working in sectors like administration are far likelier to be stuck in low pay than others."
 
You can download Starting out or getting stuck? here.