5.24m people earn less than a living wage

According to Inside Housing:

The analysis by accountancy firm KPMG suggests 21% of employees are paid less than the hourly rate aimed at covering the basic cost of living, up from 20% a year ago.

This comes as it is announced the living wage has been raised by 20p to £7.85. London mayor Boris Johnson is expected to announce the rate for the capital later this morning.

KPMG says its findings have largely been driven by steep increases in the cost of living, combined with slow growth in median hourly wages.

Young people are the worst off, with 72% of 18-21 year olds earning below the living wage, and 27% of 22-29 year olds.

Women are also significantly more affected than men, with 27% of women not paid the living wage compared to 16% of men.

The rate has until today been £8.55 an hour in London and £7.65 outside – compared to the national minimum wage set by the government which stands at £6.31.

Marianne Fallon, head of corporate affairs at KPMG, said: ‘Low pay is a real problem in Britain, particularly at a time when the cost of living is rising at a faster rate than earnings.

‘Whilst it is still not easy, earning a living wage can make a huge difference to individuals and their families, enabling them to afford a basic standard of life.’

The research found that Northern Ireland has the highest proportion of workers paid less than the living wage at 26% followed by Wales at 25%.

The lowest proportions are in London at 17% (2012: 16%) and the south east at 18% (2012: 16%).

The living wage is voluntary and promoted by the charity the Living Wage Foundation.