Large ethnicity gap in real living wage, report finds

People of certain ethnicities in London are significantly less likely to earn a 'real living wage', a new report has found.

The Living Wage Foundation says almost a third of workers with a Pakistani or Bangladeshi background are on low pay.

This is compared to just 10.4% of white workers.

The report also found that 23.1% of black Londoners earn less than what the Living Wage Foundation says is enough to live on.

As well as ethnic disparities, the foundation's report also finds a stark geographic divide as the top five local authorities worst impacted by low pay in the UK are those in outer London boroughs.

A spokesman at the Department for Business and Trade said: "We are committed to building an economy that works for everyone.

"Our National Minimum Wage and National Living Wage [the government's name for the minimum wage after the age of 23] protect the lowest paid within our society - including ethnic minorities."

The Living Wage Foundation is calling for employers to pay a 'real living wage' - an independently-calculated rate based on what people need to afford the rise in the cost of living.

It says hourly pay should be at least £11.95 in the capital.

The minimum legal wage for those aged 23 and over is currently set at £9.50 per hour, set to rise to £10.42 in April.

In response to the report, a spokesperson for the Mayor of London said: "The mayor has long championed the London Living Wage and co-chairs the 'Making London a Living Wage City' steering group.

"However, [this] report shows there is still much to be done to ensure that all Londoners receive fair pay for their hard work.

"Since Sadiq became Mayor the number of accredited London Living Wage employers has increased more than five-fold, and the mayor is determined to keep up this momentum to build a better and fairer London for everyone."

Around 12,000 businesses across the UK voluntarily pay the Living Wage Foundation's recommended 'real living wage', with around one in nine British workers now working for an employer signed up to the campaign.