More than a third of Hartlepool workers do not earn enough to live on, according to new research.
Figures from the TUC show 34.7 per cent of people in the town are paid less than the living wage – defined as the minimum hourly rate needed for workers to provide for themselves and their family.
And Hartlepool is the worst place in the region for the number of women earning less than the living wage, with 46.7 per cent of female workers taking home less than the minimum £7.85 an hour.
TUC analysis shows nationally one in five jobs nationwide pays under the living wage – leaving more than five million people on less than subsistence pay.
In the North East, the Middlesbrough South and East Cleveland constituency tops the list of living wage blackspots, followed by Hartlepool, Berwick, Newcastle North and North West Durham.
Hartlepool MP Iain Wright said:
“In-work poverty is getting worse and it is proof the economy might well work for millionaires at the top, but does nothing to help people on low pay.”
Mr Wright raised the issue of pay inequality in a Commons debate last week in his role as Shadow Minister for Industry, and referred to Hartlepool.
“Almost a quarter of North East workers and nearly half of all part-time staff are not being paid a living wage,” he told MPs.
“It is striking that the people most likely to be in poverty in Britain in the 21st Century are those in work. No-one can honestly suggest that the economy is working well or as productively as it could be when that is the case.
“This country will not achieve our vision of a highly-skilled, well-paid and innovative work force, ensuring that the benefits of economic growth are enjoyed by all in work, if we continue down the present path.
“The taxpayer is having to subsidise, through tax credits and other parts of the welfare state, the failure of many firms to pay a decent wage.”
Hartlepool Citizens’ Advice Bureau manager Joe Michna said the centre was dealing with the consequences of low wages.
“These figures come as no surprise,” he said.
“Certainly a large number of our clients, particularly those struggling with their daily needs, would be below what is defined as the living wage.
“We get a lot of people who are on the minimum wage and others who are just above it.”
Northern TUC Regional Secretary Beth Farhat said:
“These figures show that huge numbers of working people in the North East are struggling to bring home a wage they can live off.
“Extending the living wage is a vital step towards tackling the growing problem of in-work poverty in parts of the North East – and Britain as a whole.
“Working families have experienced the biggest squeeze on their living standards since Victorian times, and these living wage figures show that women are disproportionately affected.
“Pay has been squeezed at all levels below the boardroom, and the government’s mantra about ‘making work pay’ is completely out of touch with reality.
“The number of living wage employers is growing rapidly and unions are playing their part in encouraging more employers to sign up and pay it.
“But we need to see a far wider commitment to pay the living wage from government, employers and modern wages councils – to drive up productivity and set higher minimum rates in industries where employers can afford to pay their staff more.”
Source – Hartlepool Mail, 23 Feb 2015