In One London Borough, Over 40% Of People Don't Earn London Living Wage

Will Noble
By Will Noble Last edited 20 months ago
In One London Borough, Over 40% Of People Don't Earn London Living Wage

You might like to think that an increasing number of people are earning the London Living Wage, but these graphics from Centre for London beg to differ.

In 2008, the worst-paid borough — Newham — had 31%-35% of residents earning below London Living Wage. In 2015 this had risen to 36%-40%. Neighbouring Barking and Dagenham overtook Newham as worst-paid borough in 2015 — with 41%-45% of residents not making LLW.

We wonder if Newham shedding its uncoveted title has anything to do with the legacy of the 2012 Games, and the major regeneration and housing schemes that happened in the borough as a result.

Certainly the fact that 52% of new homes in Barking and Dagenham are 'affordable' gives us a clue as to why so many people earning less than LLW would want/need to move there.

Just a quick glance at the shading of the boroughs shows a generally dramatic rise in Londoners earning under the LLW between 2008 and 2015 — it applies to most boroughs.

The research doesn't necessarily show a drop in earnings though. For instance, in 2008, LLW was £7.45 per hour, whereas by 2015, it'd risen almost £2 to £9.40 per hour. Centre for London's research does, though, suggest that employers are failing to keep up with the LLW recommendation.

Will we see more boroughs turning completely black over the next few years? It's not unlikely.

These graphics are taken from London Essays, a journal published by Centre for London, supported by Capital & Counties Properties PLC. The full set of essays can be found here.

Last Updated 04 May 2017