Millions of workers in the UK are trapped in jobs that simply don’t pay enough to live on. In February, the Living Wage Foundation revealed that one in six UK jobs, or 4.5 million, were paid below the real Living Wage in 2024. The figures mark the largest increase in the number and proportion of low paid jobs on record, and reversed a trend of steady declines since the mid-2010s. This is a crisis for workers: more and more are struggling to make ends meet on low pay after years of high prices that their pay has failed to keep up with. Now more than ever, businesses must step up and commit to paying the real Living Wage, the UK’s only wage rate independently calculated to meet living costs.

Behind the numbers are real people working in roles that keep society running — hospitality staff, supermarket workers, carers. Low pay is especially common in these vital sectors, where people struggle to stay afloat despite working long shifts. And it’s getting worse: in 2024, 800,000 more jobs fell below the real Living Wage, showing how quickly things are moving in the wrong direction.

The effects of low pay are stark. Workers in low-paid jobs are forced to choose between basic necessities: our polling found that two in five low-paid workers used food banks in the past year, and one in three regularly skip meals. One in four can’t afford to heat their homes. The stress of constantly struggling to meet basic needs takes its toll on low paid workers’ mental and physical health: two in three said that their pay worsens their mental health and causes sleep problems.

Just ask Sam, a worker at accredited Living Wage Employer Thomas Kneale in Manchester. In a previous job where he was paid less than the real Living Wage, Sam found himself regularly choosing between paying one bill or another, missing out on social events with friends and family, and even cancelling doctor’s appointments because he couldn’t afford the prescriptions. No one should have to make those choices. Every worker needs decent pay to thrive.

That’s why the real Living Wage is so important. It’s the only UK wage rate based on what people actually need to live — currently £12.60 an hour across the UK and £13.85 in London. It covers the basics like rent, food, and childcare, but also enables workers to cover unexpected costs and afford simple pleasures, such as buying a birthday present for a child or taking a modest family holiday. Unlike the government’s rate, which is the legal minimum employers have to pay, the real Living Wage reflects the true cost of living. For a full-time worker, it’s worth £760 a year more than the legal minimum — equivalent to three months of food or two months of housing and energy costs — or £3,200 a year for workers in London, which could pay for almost a year’s worth of food, or over four months of housing and energy costs.

Being paid the real Living Wage makes a huge difference to people’s lives. For Sam, moving to a job where he earns a real Living Wage has been transformative. ‘I can live my life on my own terms without the stress and anxiety of living with no money,’ he told us. Kath, who works at a Living Wage Employer in Salford, says she can now afford to take her children out for a meal, or enjoy a day at the cinema or a museum. Many of us take these things for granted, but they are necessary to live a dignified life. These stories show the difference that decent pay can make.

The real Living Wage isn’t just good for workers. It’s good for businesses and the economy, too. A survey of accredited Living Wage Employers found that 94 percent reported benefits from paying the real Living Wage, including improved reputation, productivity, recruitment and retention. Happier and well-supported employees are more productive and more likely to stay in their jobs, reducing the costs associated with turnover and absenteeism. Research by Cardiff Business School shows that if just a quarter of low-paid jobs were uplifted to the real Living Wage, it would deliver a £1.2 billion boost to the UK economy through increased wages, spending and productivity.

The campaign for a real Living Wage began in 2001 when grassroots organisation Citizens UK brought local communities in East London together to talk about the issues affecting them. One issue came up time and time again: low pay. On a rainy day later that year, local people marched down Mile End Road demanding fair pay for East London hospital workers — and a movement was born. Today, there are over 15,000 accredited employers committed to paying their staff a wage that meets everyday needs, and nearly half a million workers receive a vital cost of living pay rise each year thanks to the campaign. The movement has put over £3.5 billion into the pockets of workers since that first meeting in East London over 20 years ago, and one in seven UK workers are now employed by a Living Wage business.

The Living Wage movement has come a long way, but there’s still much to be done. With 4.5 million workers still struggling on low pay, and that number growing, it’s more important than ever that employers step up and do the right thing by ensuring they are paying a wage that reflects the cost of living. Decent pay ensures work that works for everyone.