New analysis shows that thousands of UK charity sector workers are being paid less than the real Living Wage, despite growing calls for fair pay across the not-for-profit sector.
Figures from the Office for National Statistics (ONS), analysed by the Living Wage Foundation, reveal that 12% of jobs in the not-for-profit sector were paid below the real Living Wage in 2024. This marks an increase from 10% in 2023, meaning 2,364,000 roles are now classified as low paid.
By comparison, just 5% of public sector jobs were below the real Living Wage, while the rate in the private sector was four times higher at 20%.
Living Wage and the Cost of Living Crisis
The real Living Wage, calculated by the Living Wage Foundation, is the only UK pay benchmark based on actual living costs. It currently stands at £12.60 an hour across the UK and £13.85 in London. This is significantly higher than the government’s legal minimum, the National Living Wage, which applies to workers aged 23 and over.
For a full-time worker, the difference means earning £2,262 more a year outside London, or £4,699.50 more in the capital.
Katherine Chapman, Executive Director of the Living Wage Foundation, said: “No-one wants their workers to be forced to skip meals, but low pay in the third sector means that many charities may be perpetuating the very problems that they were set up to solve. Everyone deserves to be paid enough to afford decent standard of living.”
Regional Inequality in Charity Pay
The North East had the highest proportion of low-paid not-for-profit roles, at 18%. By contrast, the South East had the lowest, at 9.5%. Roles often affected include care workers, charity shop assistants, and entry-level positions.
A CharityJob survey earlier this year found that one in four entry-level charity jobs pays less than the real Living Wage, raising concerns about accessibility and diversity in the sector.
The Human Impact of Low Pay
Research published by the Living Wage Foundation highlighted the struggles faced by workers earning below the real Living Wage. Two in five had used a foodbank in the last year, with 28% relying on them monthly. One in three admitted skipping meals, while 31% had fallen behind on bills and 24% could not afford to heat their homes.
The financial strain also has a significant mental health toll, with 67% of low-paid workers reporting that inadequate pay negatively affected their wellbeing.
Charities and Funders Supporting Fair Pay
Despite rising low pay, over 2,000 UK charities are now accredited as Living Wage employers, including Oxfam, Shelter, Macmillan and WWF. More than 80 Living Wage Funders also commit to supporting grantees in paying fair wages through their grants.
Rob Mills, CEO of Walton Charity, said: “At Walton Charity, our commitment to fairness and equity extends not just to our service users, but also to our team and the wider community. The services which we and the wider third sector offer are more vital than ever, as need continues to rise. At our foodbank alone we have seen a 40% increase in demand since 2022, with the number of food parcels we distribute topping over 5,300 this year: the highest on record.”
Looking Ahead
The Living Wage Foundation argues that accreditation helps charities retain staff, improve recruitment, and promote wellbeing. It also supports greater diversity, ensuring that workers from less affluent backgrounds are not forced to reject opportunities due to financial barriers.
Chapman added: “The support of our 80+ Living Wage funders has been crucial in enabling charities to become Living Wage employers. We’d encourage more grant-makers to consider becoming Living Wage Funders, and structure fair pay into their grant-making processes.”
