The Daily Observer London Desk: Reporter- Victoria Smith
Fewer than one in ten workers are now in low-paid jobs, official figures show, suggesting that Britain is increasingly a nation of middle earners.
Just 8.9 per cent of UK jobs pay an hourly rate that is less than two-thirds of the average – the lowest level since 1997.
Back in 2010, when Labour was last in power, more than a fifth of workers (21.3 per cent) were defined as low paid.
Increases in the national minimum wage – and particularly then-chancellor George Osborne’s introduction of the national living wage eight years ago – have since delivered a major boost to pay.
Nye Cominetti, an economist at the Resolution Foundation think- tank, said: ‘When it comes to hourly pay, the pattern is very clear: the minimum wage has led to much faster pay growth for low earners, especially since 2015.’
Fewer than one in ten workers are now in low-paid jobs, official figures show, suggesting that Britain is increasingly a nation of middle earners (Stock Image)
The proportion in low-paid jobs was down from 10.7 per cent in 2022, the figures from the Office for National Statistics show.
At the same time, there was a slight drop in high-paid jobs –those earning 1.5 times the average, from 23.8 per cent of the total last year to 23.4 per cent.
Mr Cominetti said that was partly due to more and more high-paid workers moving into self-employment to reduce their tax bills.
‘Britain has a bulging middle as the share of both high and low- paid employees continues to decline,’ he added.
The ONS said the fall in proportion of low-paid jobs came as the national living wage and national minimum wage rates rose earlier this year. The fall in low-paid jobs when using a different measure – of weekly wages – was less pronounced but still significant. They represented 23.1 per cent of the workforce, down from 24.7 per cent last year and 28.7 per cent in 2010.
The proportion in low-paid jobs was down from 10.7 per cent in 2022, the figures from the Office for National Statistics show (Stock Image)
The disparity between the figures based on hourly and weekly wages suggests that while pay rates may have gone up, people are working fewer hours a week. One interpretation may be that employers are cutting hours due to having to pay more per hour.
Business minister Kevin Hollinrake said: ‘This government and employers are improving the lives of our lowest paid workers across the country as these statistics show, creating more job opportunities and boosting the economy. We’re firmly backing British people to ensure they are fairly paid for their hard work.’
Business minister Kevin Hollinrake said: ‘This government and employers are improving the lives of our lowest paid workers across the country as these statistics show, creating more job opportunities and boosting the economy. We’re firmly backing British people to ensure they are fairly paid for their hard work.’
The Bank of England looks set to hold interest rates at 5.25 per cent today amid fears that the UK could slide into recession.
The Bank of England has raised interest rates 14 times since December 2021 in a bid to quell soaraway inflation, which peaked at 11.1 per cent last year.
Mike Riddell, of Allianz Global Investors, said: ‘Economic activity appears to have slowed further, the housing market is weaker, consumer spending is falling and inflationary pressure is showing further signs of dissipating.’
