Almost 4 million trapped in ‘insecure’ and low-paid work

Around 3.7 million workers are “trapped” in low-paid and insecure work, new research suggests.

This group of workers is more likely to have lost their job in the Covid pandemic and earn less than the independently-calculated real living wage, according to the study.

Just under half (46%) of low-paid workers were away from work at the height of the pandemic, mostly due to being furloughed, but this compared to fewer than a fifth of workers in secure employment, an analysis of official figures by The Living Wage Foundation showed.

And of those paid below the real living wage, 12% receive less than 24 hours’ notice for their working hours, shifts or work schedules, while half had less than a week’s notice, said the report.

Two in five were hit by shifts being unexpectedly cancelled, and of those, 28% received no pay, the study indicated.

The research also showed that significant differences were found based on ethnicity, age and sector. A quarter (25%) of Bangladeshi workers experience low-paid, insecure work, the same as for Pakistani workers.

Meanwhile, 13% of black workers face low-paid insecure work, and the same is true of 10% of white workers and Indian workers.

Over 70-year-olds are most likely to be in low-paid insecure work, followed by 16- to 19-year-olds, the research showed.

And in terms of sector, the agricultural industry has by far the most low paid insecure workers (47%), followed by accommodation and food services (22%).

The Trades Union Congress (TUC) called on the government to put an “end to the scourge of insecure work” and Labour’s deputy leader Angela Rayner said the UK’s economic model was “broken.”

Graham Griffiths, director of the Living Wage Foundation, said: "Insecure work has been a consistent feature of the labour market over the past 20 years.

"The result is millions of people unable to get the hours and the pay they need to meet their everyday needs, with many families throughout the UK struggling to keep their heads above water.

"Over the past year this problem has been exacerbated, with many low paid workers in insecure jobs also more likely to lose work.

"There is a real danger that as we look to recover from the huge damage of the pandemic, we fail to recognise the vital need for an economy built on jobs with decent pay and secure hours. This is what we need for a modern, dynamic economy that delivers stability to workers, families and businesses."

The foundation said millions were "trapped" in low-paid, insecure work, adding that a number of organisations have committed to provide guaranteed secure hours and payment if shifts are cancelled, through a programme it has launched.

Angela Rayner, Labour's deputy leader, said: "The scourge of insecure work and poverty wages that is blighting millions of lives is proof that our economic model is broken.

"A job should provide security, dignity and a proper wage that you can support your family on.

"We need a new deal for working people. Labour will deliver an immediate living wage of at least £10 an hour, end insecure work and zero-hours contracts by creating a single status of 'worker', and give all workers full rights from day one on the job so that everyone has the right to sick pay, the minimum wage, and holiday pay."

The real living wage is £10.85 an hour in London and £9.50 outside the capital, compared with the official minimum of £8.91 for adults.

TUC General Secretary Frances O’Grady said: “Everyone deserves a decent, secure job they can build a life on. But too many in the UK are stuck in insecure work and don’t know how much they’ll be earning from week to week, or whether they’ll even earn enough to put food on the table.

“Many of these workers are the key workers we all applauded.

“Time and time again, ministers have promised working people improved rights and protections. But they have repeatedly failed to deliver.

“Enough is enough. It’s time for the government to put an end to the scourge of insecure work – starting with bringing forward an employment bill to improve rights at work and ban hated zero-hours contracts.”

The TUC released their own research into insecure work earlier this month and said analysis based on official data revealed that in the UK, 1 in 9 (3.6 million) are in insecure work.

Additional polling from the TUC, conducted by Britain Thinks and GQR, showed that insecure workers are more likely to report their working conditions getting worse in the last year than those in secure occupations (39 per cent to 27 per cent)

And that more than half (55 per cent) of insecure workers had their hours cut due to the pandemic. It also indicated that insecure workers are ten times more likely than workers in more secure jobs to get nothing when off sick (51 per cent to 5 per cent).

Katie Schmuecker, deputy director of policy and partnerships for the Joseph Rowntree Foundation, said: "Good jobs should provide a reliable foundation to enable people to build a better life for themselves and their families.

"Too often, the jobs that are available don't offer the stability or security workers and their families need to plan their lives and avoid being pushed into poverty.

"More than a third of people paid below the real living wage say that short notice periods for shifts had a negative impact on their household finances."

A BEIS spokesperson said: “The government is determined to make work pay, having recently raised the National Living Wage, with a commitment to increase it further to reach two thirds of average earnings by 2024.

“We are committed to going even further to support workers, pushing ahead with plans to include a new right for all workers to request a more predictable contract from their employers, giving individuals the security they need.”

Additional reporting by PA