Northern Ireland has the highest rate of low paid jobs in the UK

The Real Living Wage is a voluntary wage rate set by the Living Wage Foundation. It is the only rate of pay based on the cost of living and currently stands at £12.60 for the UK (£13.85 in London). For a full-time worker, that represents £2,262 more than someone earning the government’s National Living Wage.

The 2024 data shows that 4.5 million workers across the UK are paid below the Real Living Wage, an increase of 800,000 low paid jobs, up from 3.7 million just a year earlier.

Northern Ireland is the region with the highest rate of low paid jobs, accounting for 20.6 per cent, or 224,000 jobs. It also had the steepest increase in the proportion of low paid jobs compared to 2023, rising from 16 per cent then. Females in Northern Ireland are disproportionately affected, accounting for 138,000 of 224,000 employees paid below the Real Living Wage.

Living Wage NI was launched in June 2024.  It is a partnership between Advice NI and the Living Wage Foundation funded by the Department for the Economy. It aims to boost fair pay and drive up the number of Good Jobs across the region.

Bob Stronge, CEO of Advice NI said, “The report provides evidence that more jobs have fallen below a reasonable rate of pay. Wages are failing to keep up with the cost of living, pushing more and more workers right across Northern Ireland into in-work poverty. 

“More than 1 in 4 workers paid below the Real Living Wage rely on foodbanks at least once a month, whilst 1 in 3 skipped meals for financial reasons. Also worrying is that a third of low paid workers have fallen behind on household bills and almost a quarter report not being able to afford to heat their homes. The reality paints a poor outlook for the resilience of Northern Ireland’s workforce with 67 per cent of low paid workers reporting that their pay has negatively affected their mental health. 

“We recognise that many employers are struggling with rising operational costs, particularly with April’s changes just weeks away. However, employers should view a commitment to the Real Living Wage as an investment. We all benefit from a stronger, more compassionate and equal society, and this starts with an equitable workforce.” 

Across the UK, the sector with the highest number of low paid jobs is ‘wholesale and retail’ (1,064,000), followed by ‘hospitality’ (776,000) and ‘human health and social work’ (677,000).

Research by Cardiff Business School commissioned by the Living Wage Foundation has found that if just a quarter of those earning below the Living Wage saw their pay rise to the Real Living Wage, the increase in wages, productivity and spending would deliver £1.2 billion back into the UK economy, or £47 million in the case of Northern Ireland. Yet, the number of Real Living Wage accredited employers in Northern Ireland is just 141.

Mary McManus, Regional Manager for Living Wage NI, called on more employers in Northern Ireland to commit to the Real Living Wage. She said, “Living costs are spiralling and people are struggling to put food on the table and heat their homes, so this research is particularly disappointing news for Northern Ireland. However, more and more employers are starting to appreciate that paying the Real Living Wage isn’t just the right thing to do for their workers, it is also good for business by helping to attract and retain people. With the research showing there are economic benefits to gain, even if just quarter of low paid workers were uplifted to the Real Living Wage, we are calling on more businesses to become Living Wage Employers.”

Katherine Chapman, Living Wage Foundation Director, said, “Millions of workers are struggling to afford the basics as wages fail to reflect the cost of living, but we know there is a solution. Employers that commit to the Real Living Wage are not only giving their staff security and stability, but they’re also helping to strengthen the economy.”

LQ BID is setting a leading example for Northern Ireland. It hopes it can transform the Linen Quarter into Northern Ireland’s first Real Living Wage District and has pledged to fund first year accreditation fees for businesses in the Linen Quarter with up to 500 employees.

Managing Director of LQ BID, Chris McCracken, said, “We are a real Living Wage employer because we are pro-people and believe in creating a more equitable workplace. By putting more money in people’s pockets, we are not only helping them to meet their everyday needs, but also helping to build a high-performing, sustainable economy. We are pleased that businesses across the Linen Quarter have also joined this movement. We hope that in 2025 more employers recognise the long-term value fair wages bring to recruitment, retention and workplace culture as we collectively contribute to the Linen Quarter’s reputation as a great place to work.”

For more information on the Real Living Wage in Northern Ireland visit adviceni.net