The causes of social and economic inequalityLow income level

The National Living Wage (NLW) is the minimum pay per hour which workers must receive by law. From April 2024 the rate was £11.44 for people aged 21 and over.

Workers who are under the age of 21 are entitled to the National Minimum Wage (NMW). The wage rate per hour depends on their age and if they are an apprentice.

Despite the NLW/NMW, many jobs such as catering, cleaning and care sector jobs, are low paid. People working in these types of jobs on the NLW/NMW often don’t earn enough money to make ends meet. They are said to experience “in-work poverty” as their income is not high enough to lift them out of poverty. Anti-poverty campaigners have called for higher hourly wage rates or a Real Living Wage of at least £10.90 per hour (2023).

In some ways, it’s harder to be low paid than unemployed, as the person may not be entitled to the same benefits the unemployed are. One in seven referrals to Trussell Trust foodbanks are for people who are in employment – mostly part time.