Retail workers among those suffering most from ‘in-work poverty’

The figure was calculated by the Living Wage Foundation, using ONS Annual Survey of Hours and Earnings data, which revealed that the number of those working in retail and wholesale paid below the “real living wage” was the highest in any sector.

The Living Wage Foundation wants workers to be paid a real living wage based on the cost of living, which at present would be £13.45 per hour – higher than the legal national living wage set at a minimum of £12.21. 

Retailers have faced an increased employment cost burden following government changes such as increased National Insurance costs, which have been widely blamed for impacting employment, particularly among the young.

Living Wage Foundation director Katherine Chapman said: “Today’s findings show that over a million wholesale and retail workers are paid less than the real living wage, the highest number in any UK sector.

“They, along with millions of other workers across the UK, are still struggling to live with dignity as their pay is too low to cover basic living costs. The real living wage is the solution.

“After years of high prices, it’s more important than ever that more employers join over 1,000 in the wholesale and retail sector, and 16,000 across the wider economy, committed to doing the right thing by paying their workers in line with the cost of living. It’s good for workers, businesses and the economy.” 

Retailers including Burberry, Ikea, Lush and Uniqlo are among those to be accredited real living wage employers by the Living Wage Foundation.