Low pay

Workers paid below the London Living Wage

Key findings

1 in 5

employees were paid below the London Living Wage in 2017 (730,000 people)

64%

of jobs in the hospitality sector are low-paid.

55%

of low-paid jobs are held by women.

Overview

The relationship between poverty and low pay is complicated. Low pay alone does not necessarily mean poverty – there are other factors, such as the amount of in-work benefits received by the family, the income of a partner or other family members, family size and housing costs, which are particularly important in London. 

The focus of these indicators is identifying who is likely to be low-paid and therefore potentially at increased risk of being in poverty. The term low pay is used to mean anyone paid below the London Living Wage. 

The London Living Wage is calculated independently in relation to living costs. This is different from the mandatory National Living Wage, which is currently £7.83 per hour for workers aged over 25. The London Living Wage rate for 2016/2017 is £9.75 an hour, with earlier years using previous rates (listed here). The rate for 2017/18 is £10.20. On each graph, you can click 'show graph details' to see the date and source of the data used.

People who are BAME are more likely to be low paid, especially people from Bangladeshi or Pakistani origin, and women are more likely to be low paid than men (although low paid workers who are full-time are more likely to be men). 21% of employed Londoners are paid below the London Living Wage, which is the same as last year's figure. 18% of jobs in London are low paid (including part time jobs). Nearly 64% of jobs in the hospitality sector pay below the London Living Wage – by far the highest of any industry. The next highest rate is in retail and wholesale, where 41% of jobs are low paid.


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