Life on Low Pay 2025: The impact of low wages on UK workers

UK poverty rates are higher now than at any point in the twenty-first century, and the poorest households continue to be the hardest hit. Our seventh poll asking what life is like for the UK’s low-paid workers shows that people paid below the real Living Wage continue to feel the sharp end of these pressures.  

“We’re not living the maximum but we’re not even living the minimum.”  

– Focus group participant 

Research summary 

We commissioned a poll of 2,007 UK workers paid below the real Living Wage – set at the time of writing at £12.60 nationally and £13.85 in London – to understand the impact of low pay on different aspects of their lives. In addition, we ran a focus group with workers paid below the real Living Wage to understand their experiences.  

Our findings show that low wages negatively impact people’s ability to cover even basic living costs. Many low-paid workers are making cutbacks to essentials, some doing so despite taking on additional hours or juggling multiple jobs. Some groups, such as disabled workers, are disproportionately affected. Nearly two-thirds of low-paid workers report that moving to the real Living Wage would positively affect their overall quality of life, showing the importance of paying workers a wage based on the real cost of living. 

“I’m really struggling balancing the bills, the rent, and also the food for the children and also for myself. Some sort of sacrifice is always happening, whether for myself or my children.” 

– Focus group participant 

Key findings 

• 12 per cent of low-paid workers have no money left over each week or find themselves further in debt after paying for basics.
• Almost 6 in 10 (59 per cent) skipped meals, turned off the heating, fell behind on bills or took out a pay-day loan in the past year to cover essentials.
• Over 2 in 5 have used a foodbank (42 per cent) in the past year.
• More than 2 in 5 (45 per cent) are not confident they could afford an unexpected, necessary cost of £200. 
• Some groups are disproportionately affected. For example, though 24 per cent of all-low paid workers have no savings, this rises to 27 per cent of women, 31 per cent of those with qualifications up to and including A-level, 35 per cent of renters, and 36 per cent of disabled workers.
• 2 in 5 (41 per cent) report that their level of pay negatively affects their overall quality of life.
• 2 in 5 (42 per cent) report that their level of pay negatively affects their mental health, and 1 in 3 (34 per cent) report that it negatively affects their physical health.
• Almost 3 in 10 (29 per cent) report that their level of pay has a negative impact on their relationships with close friends and family.
• Almost two-thirds (65 per cent) think the real Living Wage would positively affect their overall quality of life. 

“It’s not easy to cheer up yourself. So all the time you are overwhelmed, thinking about money, and you need to work and work and work [...] you can burn out.” 

– Focus group participant