50,000 workers in Shropshire earn below Living Wage

In total, 50,000 people across the county are struggling to get by, the analysis by accounting giant KPMG found.

It looked at the number of people who are earning less than the amount, calculated by the Living Wage Foundation, needed to provide an adequate standard of living.

The figures are based on the £7.85 an hour rate suggested over the last year, although this was raised to £8.25 for workers outside London this week, potentially increasing the number of Shropshire workers falling below the threshold. In the capital the figure went up from £9.15 to £9.40.

In Telford & Wrekin, 21,000 people are earning less than £7.85 an hour – 25 per cent of the workforce – while in the rest of Shropshire 29,000 people are below the line, or 29 per cent of workers.

Across the West Midlands, 26 per cent of people are struggling below the Living Wage, around 560,000 people, while the UK-wide figure stands at 23 per cent.

UK-wide, the median wage is £11.61 and hour, but the West Midlands is also falling behind on that front, with a median figure of £10.69 across the region.

In Wolverhampton, a quarter of employees earn less than £7.85 per hour, representing 23,000 jobs, while Herefordshire is among the region's worst-paying counties, with 32 per cent of people earning below the threshold.

Mike Steventon, Midlands regional chair at KPMG, said: "While nationally, the past year has seen an increased awareness of the Living Wage amongst the UK public and 2,000 UK employers now accredited by the Living Wage Foundation, the picture in the West Midlands doesn't seem to be improving.

"With the cost of living still high, the squeeze on household finances remains acute, meaning that the reality for many is that they are forced to live hand-to-mouth.

"In the West Midlands, it is clear that there is still more to be done if we are to eradicate in-work poverty, especially in the more rural areas of our region."

He added: "The fact that we have a higher proportion of workers earning below Living Wage than the UK average should be a shot in the arm to our region's employers.

"There is a perception among businesses that the Living Wage reduces employment levels and impacts on investment as profits are squeezed.

"However, there is ample evidence to suggest the opposite – in the shape of higher retention and higher productivity."

Mr Steventon said: "It may not be possible for every business, but it is certainly not impossible to explore the feasibility of paying the Living Wage."

Nationally, the figures show that part-time jobs are three times as likely to pay below the Living Wage as full-time roles.

Despite accounting for fewer than one-third of all UK jobs, there are more part-time roles paying less than the Living Wage (3.205 million) than full-time jobs (2.623 million).