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One in five pay less than living wage

A TUC report reveals that workers struggle to live off their pay, write Peter Lazenby and Luke James

CHANCELLOR George Osborne’s “making work pay” mantra was shattered yesterday by stats that show workers across swathes of Britain earn less than the living wage.

One in five jobs in Britain pays less than needed to cover basic living costs, an analysis of official figures by House of Commons research for the TUC reveals.

But it also shows that in some areas more than half of working people are paid less than the living wage.

Birmingham Northfield tops the list of Britain’s poverty pay blackspots with 53.4 per cent of people working there earning less than £7.85 an hour, followed by Kingswood near Bristol (51 per cent) and Dwyfor Meirionnydd in north Wales (50.9 per cent).

For women the figures are even worse, with more than 60 per cent paid less than the living wage in worst-hit areas.

TUC general secretary Frances O’Grady said the figures prove Mr Osborne’s pay claims are “completely out of touch with reality.”

“Extending the living wage is a vital step towards tackling the growing problem of in-work poverty across Britain,” she said.

“Working families have experienced the biggest squeeze on their living standards since Victorian times, and these living wage figures show that women are disproportionately affected.”

The figures were revealed as part of the TUC’s Fair Pay Fortnight, which runs until March 1.

They came as the Low Pay Commission was due to inform Con-Dem ministers today of its recommendation on how much the minimum wage should be raised by.

The recommendation won’t be revealed but it is understood that Mr Osborne could be set to unveil a pre-election wage rise in his budget next month, bowing to union pressure for a £7-an-hour rate.

But shadow work and pensions secretary Rachel Reeves said: “The growth of low pay under David Cameron shows the Tory plan has failed millions of working families.

“Five years of the Tory low-wage, low-skill economy has left one in five workers paid less than the living wage, making life harder for millions of people who do the right thing, work hard and contribute.

“The choice we face at the election in May couldn’t be clearer.”

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