London’s Poverty Profile

Low pay

Workers paid below the London Living Wage

Key findings

1 in 5

employees were paid below the London Living Wage in 2016.

410,000

London workers earned less than £200/week in 2016.

Women

who are part-time employees are most likely to be low-paid in London.

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 for 2016 was set at £9.40 an hour and was calculated by the Greater London Authority. This is different to the mandatory National Living Wage, which was £7.20 an our from April 2016 for workers aged over 25.   


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