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Record numbers of people in Britain are low-paid


More than five million people in Britain are in low paid jobs, research for think tank Resolution Foundation has said.
The number of people earning less than £7.69 per hour has rose by 250,000 to 5.2 million this year, and one in four minimum wage employees have been on that rate for the last 5 years. The UK living wage, promoted by the UK Living Rage Foundation, is set currently at £7.65 per hour and £8.80 per hour in London. The current UK minimum wage is £6.50.
The number of people stuck is low paid jobs is also an issue for ministers, because it keeps tax revenues low. HMRC did not meet its income tax targets this year, mostly due to so many people being in low paid jobs. Workers in Britain were more likely to be low paid than workers in comparable economies like Germany and Australia, the think tank's report said.

The Resolution Foundation's chief economist Matthew Whittaker, said:
"While recent months have brought much welcome news on the number of people moving into employment, the squeeze on real earnings continues.
"Being low paid, and getting stuck there for years on end, creates not only immediate financial pressures, but can permanently affect people's career prospects.
"A growing rump of low-paid jobs also presents a financial headache for the government because it fails to boost the tax take and raises the benefits bill for working people."

Shadow treasury minister Catherine McKinnell said most people were "still not feeling the recovery".

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