Women from ethnic minorities face “a double-jeopardy” on low pay, new research shows

Women from ethnic minorities face “a double-jeopardy” when it comes to the chance of being on very low pay, a new report has found.

Across both genders, workers from ethnic minorities are more likely to earn below the “real living wage”, according to research published today by the Living Wage Foundation (LWF). For example, 33% of Bangladeshi workers, 29% of Pakistani workers, and 25% of black workers earn below this level, versus 20% of white British workers.

The report also found that, in almost all ethnic groups, women were more likely to be on very low pay than their male counterparts. For example, 32% of Pakistani women earn below the “real living wage”, versus 28% of Pakistani men. Similarly, 27% of black women earn below this level, versus 22% of black men. 

“Women from minority ethnic groups face a double-jeopardy when it comes to earning less than the [real] living wage…These results bring into sharp focus how low pay is not only a racialised issue, but also a gendered issue,” LWF’s report says. The research also found a large gender gap between white British workers, with 24% of women earning less than the “real living wage”, versus just 16% of men.

LWF, a charity, defines the UK’s “real living wage” as £9.90 per hour for workers aged 18 and above, with a higher rate of £11.05 in London. It is calculated based on the cost of living, and is paid voluntarily by more than 10,000 businesses. 

By contrast, the government sets the mandatory minimum wage at £9.50 per hour for people aged 23 and over, with lower rates for younger workers.

Cost-of-living crisis puts low pay under the spotlight

Low pay has been under the spotlight in recent weeks, as the UK grapples with a cost-of-living crisis that is pushing household bills far beyond what many families can afford.

The country’s rate of inflation hit a 40-year high of 10.1% in July and is forecast to keep climbing. Soaring energy bills, which are driving these overall price rises, will go up by 80% from next month and are forecast to rise again at the start of next year. 

In its report, LWF urges more employers to commit to paying their “real living wage”, to help address racial inequalities and to help all households get through the coming months. 

“In a cost-of-living crisis that has yet to peak, this report makes clear that minority ethnic workers will be among those hit hardest by soaring costs as many are disproportionately employed in low-paid, insecure work,” Katherine Chapman, the Living Wage Foundation’s director, said in a statement.

Other campaign groups and unions have been calling on the government to increase the mandatory minimum wage, and to do away with lower rates for younger workers. The Trades Union Congress, a large federation of unions, last month set out a pathway for how the government could achieve a single rate of £15 per hour over time.  

LWF’s report contained some statistics that bucked the overall trend of a “double-jeopardy” for BAME women. Chinese and Indian workers were more likely to earn above the living wage than their white British counterparts – this applied to both men and women. And Bangladeshi women were less likely to be on very low pay than Bangladeshi men, although all workers in this ethnic group were amongst the lowest paid overall.

• Vote  
• 0
• 0
• You already voted!