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A £10 minimum wage would benefit millions of key workers

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Research and reports
Issue date

Introduction

During the current pandemic, there are millions of key workers keeping the country running. These include, among many other occupations, doctors, nurses, carers, hospital porters, teachers and shopworkers.

However, despite the essential work that key workers do, many are underpaid. The TUC has been calling for the minimum wage to be increased to £10 per hour to ensure that everyone is paid enough to get by.

Unfortunately, we estimate that 38 per cent of key workers are being paid less than £10 per hour. This is higher than the percentage among employees who aren’t key workers (31 per cent).

We believe that the national minimum wage should be increased as soon as possible. This will not only benefit key workers, but all of those currently being paid less than £10 per hour.

In this brief research note, we set out an estimate for the number of key workers, as well as the number of key workers earning below £10 per hour. We look at the proportion of key workers by region, gender, ethnicity, age, and public/private sector.

We show that a rise in the minimum wage to £10 per hour would mean a pay increase for up to 3.7 million key workers. As well as this, due to the demographics of those working in key worker occupations, this would particularly help female key workers, as well as young key workers.

How many key workers are there?

We estimate that there are up to 9.8 million employees who, in line with government guidance, could be classified as a key worker. This is around 35 per cent of all employees. 3.7 million of these earn less than £10 per hour.

This means that 38 per cent of key workers would benefit from the national minimum wage being increased to £10 per hour. This is a higher rate than we see among employees who aren’t key workers (31 per cent).

Who counts as a key worker?

The government’s guidance on who is a key worker is vague, and therefore our estimates rely on our interpretation.

To reach an estimate, we matched occupation groups, broken down to four-digit occupation codes, to the government’s guidance on key workers. We then used the Labour Force Survey to find the number of employees in these key worker occupation groups, as well as the number of employees earning less than £10 per hour and further information about who is working in these occupations (such as gender, age, and ethnicity breakdowns).

Even at the detail level of four-digit occupation codes however, we cannot guarantee that everyone within every occupation is a key worker.

The appendix contains the background tables, as well as a list of occupations we think fall within the key worker guidance, alongside the section of guidance they fell under.

Regional key worker employment

Key workers make up 35 per cent of all employees, but this varies by region. London has the lowest proportion (30 per cent), whereas Northern Ireland has the highest (42 per cent).

There are also significant regional disparities in the percentage of key workers who earn less than £10 per hour. In the North East, almost half of all key workers (47 per cent) are being paid less than £10 per hour. The proportion is also over 40 per cent in Yorkshire and Humberside, the West Midlands and the North West. London has the lowest proportion, but it’s still as high as 29 per cent.

Gender differences

Women are almost twice as likely as men to be employed in a key worker occupation (45 per cent, compared to 26 per cent). Many of the largest key worker occupations have a large majority of female employees. Care workers and home carers, nurses, primary and nursery education teaching professionals and teaching assistants, for example, are some of the largest key worker occupations. In each, over 80 per cent of employees are women.

As well as being more likely to be key workers, women are more likely to be low paid once they are within the key worker status. 41 per cent of female key workers are paid less than £10 per hour, compared to 32 per cent of male key workers.

Age

The percentage of employees who are key workers is fairly consistent across all age groups, all falling within a few percentage points of the proportion of all employees (35 per cent).

However, there’s a wide disparity between the percentage of key workers in each age group that earn less than £10 per hour. Young key workers are the most likely to be earning less than £10 per hour. 83 per cent of key workers aged 16 to 19 are paid less than £10 per hour. Among those aged 20 to 24, almost two-thirds of key workers (63 per cent) earn less than £10 per hour. This may relate to the fact that the national minimum wage for those aged 16-17 is just £4.55.

National Minimum Wage rates

Age

16-17

18-20

21-24

25 and over

Rate

£4.15

£4.55

£6.45

£8.72

But it’s not just the majority of young key workers who would benefit from increasing the national minimum wage to £10 per hour. Among key workers aged 65 to 69, 51 per cent are paid less than £10 per hour.

 

Ethnicity

Black and minority ethnic (BME) employees are more likely than white employees to be key workers, with 40 per cent of BME employees being a key worker, compared to 35 per cent of white key workers.While BME employees are more likely to be key workers, there’s no significant difference in the percentage of key workers being paid less than £10 per hour (39 per cent of BME key workers, compared to 38 per cent of white key workers).

Public/private sector

While public sector employees are much more likely than private sector employees to be key workers, private sector key workers are much more likely to be paid less than £10 per hour.

Despite making up 26 per cent of all employees, public sector employees make up 52 per cent of key workers. 6-in-10 public sector employees are key workers, compared to around a quarter of private sector employees.

However, the majority (51 per cent) of private sector key workers are paid below £10, compared to 22 per cent of public sector key workers.

This reflects that many key worker occupations are in the public sector, and some of these occupations have relatively high pay, such as doctors and teachers. Union density is also significantly higher in the public sector. In contrast, there are a number of key worker occupations with both a high number of private sector employees and a high percentage of employees earning less than £10 per hour. These include shop workers, carers, and pharmacy and dispensing assistants.

Recommendations

We need a £10 minimum wage now. This would mean a pay rise for around 9 million employees. This includes the 3.7 million key workers who are currently being paid less than this while doing vital work to keep the country running.

A rise in the minimum wage would particularly benefit female key workers and young key workers, as well as key workers in the private sector and those working in northern regions and the midlands.

This ask is part of our five ways to thank a worker this May Day. In recognition of the contribution of key workers during this period, the TUC is calling on government to:

  1. Increase the minimum wage to £10 an hour for everyone now.
  2. Deliver fair pay rises for our key workers and rewards for workers across the economy that restore what they've lost through ten years of cuts and slow growth.
  3. Ban zero-hours contracts and stamp out false self-employment
  4. Increase sick pay to the real living wage and make sure everyone can get it from day one.
  5. Bring outsourced workers like cleaners in the NHS back into the public sector on public sector terms and conditions

Appendix

Background tables

All employees

     
 

Employees

Employees paid below £10 per hour

% of employees earning less than £10 per hour

     

All

27,743,698

9,361,640

34

     

Key workers

9,839,175

3,742,257

38

     

Non-key workers

17,904,523

5,619,383

31

     
             

Regions

 

All employees

Employees earning less than £10 per hour

Key workers

Key workers paid below £10

% of key workers paid below £10

Key workers as % of all employees

North East

1,053,188

472,463

386,595

182,050

47

37

North West

3,068,221

1,140,943

1,145,114

465,995

41

37

Yorkshire and Humberside

2,196,641

875,896

834,481

372,782

45

38

East Midlands

2,045,904

792,088

749,432

302,969

40

37

West Midlands

2,434,228

967,515

871,257

363,878

42

36

East of England

2,619,757

838,026

892,433

312,245

35

34

London

3,807,241

823,063

1,133,458

329,437

29

30

South East

3,867,041

1,135,727

1,284,188

498,548

39

33

South West

2,327,124

852,448

868,782

329,693

38

37

Wales

1,270,830

456,354

510,506

187,281

37

40

Scotland

2,324,819

718,269

856,468

294,033

34

37

Northern Ireland

728,704

288,848

306,461

103,346

34

42

Total

27,743,698

9,361,640

9,839,175

3,742,257

38

35

             

Age

 

All employees

Employees earning less than £10 per hour

Key workers

Key workers paid below £10

% of key workers paid below £10

Key workers as % of all employees

16-19yrs

993,752

848,878

365,388

302,093

83

37

20-24yrs

2,585,468

1,588,946

865,086

544,521

63

33

25-29yrs

3,418,015

1,151,574

1,142,959

467,602

41

33

30-34yrs

3,332,097

920,494

1,159,337

400,740

35

35

35-39yrs

3,220,732

732,035

1,110,566

286,990

26

34

40-44yrs

2,885,512

690,960

996,302

280,801

28

35

45-49yrs

3,048,923

736,786

1,115,069

306,960

28

37

50-54yrs

3,164,008

877,082

1,163,569

373,977

32

37

55-59yrs

2,693,372

875,636

1,018,506

383,308

38

38

60-64yrs

1,609,788

543,076

618,204

253,096

41

38

65-69yrs

549,171

279,332

205,449

104,729

51

37

70 and overs

242,860

116,841

78,740

37,440

48

32

Total

27,743,698

9,361,640

9,839,175

3,742,257

38

35

             

Gender

 

All employees

Employees paid below £10 per hour

Key workers

Key workers paid below £10

% of key workers paid below £10

Key workers as % of all employees

Male

13,935,349

3,823,471

3,572,654

1,155,611

32

26

Female

13,808,349

5,538,169

6,266,521

2,586,646

41

45

Total

27,743,698

9,361,640

9,839,175

3,742,257

38

35

             

Ethnicity

 

All employees

Employees paid below £10 per hour

Key workers

Key workers paid below £10

% of key workers paid below £10

Key workers as % of all employees

White

24,417,345

8,283,406

8,501,511

3,218,700

38

35

BME

3,319,388

1,078,234

1,335,670

523,557

39

40

Total

27,736,733

9,361,640

9,837,181

3,742,257

38

35

             
             

Public/private sector

 

All employees

Employees paid below £10 per hour

Key workers

Key workers paid below £10

% of key workers paid below £10

Key workers as % of all employees

Private

20,499,929

7,652,175

5,437,225

2,773,953

51

27

Public

7,169,217

1,696,081

4,382,891

963,124

22

61

Total

27,669,146

9,348,256

9,820,116

3,737,077

38

35

 

List of key worker occupations

 

Our list of key worker occupations is based on matching four-digit occupation codes to the key worker guidance.

As explained above, this is an interpretation and an estimate. Even at four-digit occupation level, occupations do not perfectly match the government’s guidance on key workers, which is vague at times.

 

Code

Employees

Link to key worker guidance

Elected officers and representatives

1116

11,537

Local and national government

Mngrs and directors in transport and distribution

1161

87,173

Transport

Mngrs and directors in storage and warehousing

1162

112,206

Food distribution

Officers in armed forces

1171

27,866

Armed forces personnel

Snr police officers

1172

8,537

Police

Snr offcrs in fire, amblnc, prison and related srvcs

1173

10,925

Public safety and national security

Health servcs and public health mngrs and directors

1181

71,576

Health and social care

Social servcs mngrs and directors

1184

34,527

Social workers

Mngrs and directors in retail and wholesale

1190

281,478

Food distribution

Healthcare practice mngrs

1241

17,515

Healthcare

Residential, day and domic care mngrs and prprtrs

1242

63,486

Social care

Shopkeepers and Prprtrs ? wholesale and retail

1254

25,349

Food distribution

Waste disposal and environmental services mngrs

1255

12,377

Utilities

Medical practitioners

2211

247,847

Healthcare

Psychologists

2212

27,900

Healthcare

Pharmacists

2213

63,468

Producers and distributors of medicine

Ophthalmic opticians

2214

10,440

Healthcare

Dental practitioners

2215

9,460

Healthcare

Veterinarians

2216

19,864

Vet medicine

Medical radiographers

2217

40,132

Healthcare

Podiatrists

2218

1,921

Healthcare

Health professionals n.e.c.

2219

56,780

Healthcare

Physiotherapists

2221

72,432

Healthcare

Occupational therapists

2222

45,938

Healthcare

Speech and language therapists

2223

16,355

Healthcare

Therapy professionals n.e.c.

2229

22,941

Healthcare

Nurses

2231

699,542

Healthcare

Midwives

2232

44,672

Healthcare

Secondary education teaching professionals

2314

403,871

Teaching staff

Primary and nursery education teaching professionals

2315

480,252

Teaching staff

Special needs education teaching professionals

2316

75,786

Teaching staff

Snr professionals of educational establishments

2317

103,759

Teaching staff

Teaching and other educational professionals n.e.c.

2319

138,753

Teaching staff

Barristers and judges

2412

7,548

Justice system workers

Solicitors

2413

96,230

Justice system workers

Social workers

2442

111,341

Health and social care

Probation officers

2443

14,763

Prison and probation staff

Clergy

2444

29,370

Religious staff

Paramedics

3213

32,554

Healthcare

Dispensing opticians

3216

9,088

Healthcare

Pharmaceutical technicians

3217

31,292

Healthcare

Medical and dental technicians

3218

35,327

Healthcare

Health associate professionals n.e.c.

3219

24,038

Healthcare

Child and early years officers

3233

41,548

Childcare

Housing officers

3234

61,528

Admin delivering essential public services

Counsellors

3235

24,331

Healthcare

Welfare and housing associate professionals n.e.c.

3239

141,931

Admin delivering essential public services

NCOs and other ranks

3311

48,126

Armed forces personnel

Police officers (sergeant and below)

3312

169,129

Police

Fire service officers (watch manager and below)

3313

47,748

Fire and rescure

Prison service officers (below principal officer)

3314

42,561

Prison and probation staff

Police community support officers

3315

9,294

Police

Protective service associate professionals n.e.c.

3319

64,568

Armed forces personnel

Air traffic controllers

3511

2,770

Air transport

Aircraft pilots and flight engineers

3512

21,867

Air transport

Ship and hovercraft officers

3513

17,312

Water transport

Public services associate professionals

3561

98,786

Local and national government

National government administrative occupations

4112

148,235

Local and national government

Local government administrative occupations

4113

139,543

Local and national government

Bank and post office clerks

4123

84,645

Workers in banks and post

Transport and distribution clerks and assistants

4134

64,549

Transport

Medical secretaries

4211

62,447

Healthcare

School secretaries

4213

67,840

Education

Farmers

5111

19,957

Food production

Telecommunications engineers

5242

54,521

Telecommunications

Butchers

5431

24,661

Food production/distributon

Bakers and flour confectioners

5432

23,291

Food production/distributon

Fishmongers and poultry dressers

5433

9,581

Food production/distributon

Nursery nurses and assistants

6121

207,410

Childcare

Childminders and related occupations

6122

36,661

Childcare

Playworkers

6123

24,004

Childcare

Teaching assistants

6125

298,302

Education

Educational support assistants

6126

172,439

Education

Veterinary nurses

6131

23,354

Vetinary services

Nursing auxiliaries and assistants

6141

389,929

Healthcare

Ambulance staff (excluding paramedics)

6142

29,886

Healthcare

Dental nurses

6143

46,089

Healthcare

Houseparents and residential wardens

6144

37,673

Social care

Care workers and home carers

6145

742,294

Social care

Senior care workers

6146

83,331

Social care

Care escorts

6147

5,384

Social care

Undertakers, mortuary and crematorium assistants

6148

25,464

Management of the deceased

Air travel assistants

6214

65,395

Air transport

Rail travel assistants

6215

16,309

Rail transport

Sales and retail assistants

7111

1,016,953

Food distribution

Retail cashiers and check-out operators

7112

159,710

Food distribution

Pharmacy and other dispensing assistants

7114

78,980

Healthcare

Communication operators

7214

24,107

Handle emergency calls

Food, drink and tobacco process operatives

8111

139,914

Food production

Energy plant operatives

8124

4,761

Utilities

Water and sewerage plant operatives

8126

9,953

Utilities

Road construction operatives

8142

15,393

Road transport

Rail construction and maintenance operatives

8143

10,320

Road transport

Large goods vehicle drivers

8211

284,017

Retail distribution

Bus and coach drivers

8213

109,819

Road transport

Train and tram drivers

8231

29,898

Rail transport

Marine and waterways transport operatives

8232

6,477

Water transport

Air transport operatives

8233

15,329

Air transport

Rail transport operatives

8234

19,190

Rail transport

Farm workers

9111

36,044

Food production

Fishing and other elementary agriculture occs n.e.c.

9119

11,310

Food production

Packers, bottlers, canners and fillers

9134

123,484

Food production

Postal workers, mail sorters, mssngrs and couriers

9211

153,083

Postal services

Refuse and salvage occupations

9235

27,041

Waste disposal

Parking and civil enforcement occupations

9242

16,586

Local and national government

Shelf fillers

9251

72,972

Food distribution

Elementary sales occupations n.e.c.

9259

22,225

Food distribution

Hospital porters

9271

18,700

Healthcare

Total

 

9,839,175

 
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