The UK social care is very popular for immigrants relocating to the country, but new research has revealed that the wage in the industry is something that immigrants intending to work in the sector should factor in their decision to relocate to the UK.
Immigrating to the UK presents a range of opportunities, but for those considering a career in social care, understanding the financial landscape in the sector is crucial.
The social care sector is known for its essential services, but unfortunately, it is also characterized by low wages. This is the summary of the report of recent research by the Living Wage Foundation, which we bring to you in this episode of Factual Briefing.
What is the Current UK Government’s National Living Wage?
As of April 1st, 2024, the Government’s National Living Wage for workers aged 21 and over has been raised to £11.44. Despite this increase, it remains below the actual earning that people need to survive in anywhere across the UK. This is called the Real Living Wage as opposed to National Living Wage.
The Real Living Wage, which is voluntarily paid by only a handful employees is calculated based on the actual cost of living, while it could be said that the National Living Wage is influenced by politics.
The current real Living Wage is set at £12 for workers across the UK, with a higher rate of £13.15 for those in London in particular.
This discrepancy translates to a significant shortfall. Workers earning the National Living Wage in the UK are effectively £1,092 per year below the real Living Wage.
This amount could cover 18 weeks of food expenses for a household or 12 weeks of housing and energy costs according to the Living Wage Foundation.
In London, the gap is even more pronounced. Employees on the National Living Wage would need an additional £3,334.50 annually to match the London Living Wage.
This extra income could provide nearly a year’s worth of food (49 weeks) or 23 weeks of housing and energy expenses, the research reveals.
How Younger Workers are Affected
By law in the UK, young workers between the ages of 18 to 20 (below 21 as usually referred to), earn much lower than adults above 21 years of age. From 1st April, 2024, the National Minimum Wage for this category of workers in £8.60.
However, for adults from 21 years of age, there is National Living Wage which was increased to £11.44 as we already noted. So, for under 21, there is a Minimum Wage, while for over 21, there is a Living Wage.
For the first time this year, the National Living Wage applies to all workers aged 21 and over, down from the previous threshold of 23 and over. However, workers aged 18-20, many of whom live independently and work full-time, still face the risk of being paid just £8.60 per hour.
In contrast, the Real Living Wage, as determined by the Living Wage Foundation, applies to all workers aged 18 and over. This wage rate is uniquely based on living costs, using a ‘basket of goods’ approach that considers everyday expenses such as weekly food shopping and household bills.
National Living Wage Vs Real Living Wage in the Social Care Sector
The major difference between these two rates is not only the reflections and realities of they each have in the life of workers. There is also the issue of law and obligation on the part of employers to observe each of them.
The National Living Wage is statutory and must be observed by employers in the UK. However, there have been reports about some immigrants earning less than this rate apparently due to their unique circumstances.
However, very unfortunately, this Real Living Wage is not mandatory, but only paid by a few employers who voluntarily opted to observe it. These are referred to the Accredited Living Wage Employers by the foundation.
Currently, over 14,000 employers have committed to paying their staff above the government’s minimum wage, adhering to the real Living Wage standard.
One obvious fact on the face of this list is that most healthcare and social care employers are missing on this list. Those who employ most of these immigrants who troop into the UK with healthcare visa are conspicuously missing amongst the Accredited Living Wage Employers.
Prevalence of Low Wages
A significant number of social care workers in the UK are paid below the real Living Wage. According to the Living Wage Foundation, 43% of adult social care workers in England earn less than this standard.
In London, the situation is even more severe, with 80% of these workers earning below the London Living Wage, which currently stands at £13.15.
Geographical Disparities in Wages
- London: The capital city faces the highest discrepancy, with a staggering 80% of social care workers earning less than the London Living Wage. This disparity is particularly concerning given the high cost of living in London.
- England: Outside of London, the issue remains significant. Approximately 43% of social care workers across England earn below the real Living Wage, indicating a widespread problem of inadequate pay.
- Other Cities: The report reveals that wages for immigrants in other cities such as Scotland and Wales earn up to £12 an hour, which is currently the recorganised Living Wage rate accross the UK for cities outside London.
Impact of Low Pay
Earning below the real Living Wage has tangible negative impacts on social care workers, leading to financial hardship and deprivation. This issue became more visible during the Covid-19 pandemic, highlighting the essential yet undervalued role of care workers in the UK.
Conclusion
For immigrants considering or currently working in the UK’s social care sector, it is important to be aware of the financial challenges. Low wages are prevalent, particularly in London and across England, due to insufficient public funding.
Understanding these issues can help in making informed career decisions and advocating for better pay and working conditions. Scotland and Wales have implemented measures to ensure social care workers receive the real Living Wage.
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