In work poverty is a major issue in London - with around half of Londoners in poverty in some kind of employment.
This report is the culmination of a three year project exploring in-work poverty in London. It proposes the creation of a new in-work poverty benchmark to help employers do more to help their staff.
Why is an in-work poverty benchmark needed?
- Significant numbers of London's workers are affected by in-work poverty. This is driven by inadequate pay, insufficient hours, and high living costs. Many employees want - and need - their employer to do more to support them.
- Many businesses and employers in London are concerned about in-work poverty - and there is an appetite to take more action.
- Research from Social Market Foundation, as part of the project, found that a benchmark could be a useful tool to incentivise businesses to take action.
The proposal for a new benchmark
This report puts forward a blueprint for a new benchmark, developed following deep research and consultation with businesses, academics and Londoners experiencing in-work poverty.
The benchmark is based around three key drivers of in-work poverty:
- Pay and conditions
- Cost of living
- Financial resilience
Within each of these three areas, the benchmark is split into three tiers - allowing a low barrier to entry, while providing to a clear pathway for businesses to follow on and do more to tackle in-work poverty.
Next steps
This proposed benchmark offers a structured, measurable approach for businesses to address in-work poverty in London. We're funding the Living Wage Foundation to lead on the next phase of the project, with Social Market Foundation support. This next phase will explore how we can transform the benchmark into a practical business tool.
