THE INSECURITY COMPLEX: LOW PAID WORKERS AND THE GROWTH OF INSECURE WORK

Joe Richardson, Living Foundation, with support from Dan Howard, Foundation

July 2021

Founding partners of Living Hours:

1 EXECUTIVE SUMMARY 3

2 INTRODUCTION 5

METHODOLOGY & DEFINITION 3 OF INSECURE WORK 9

STATE OF PLAY: HOW MUCH INSECURE WORK IS 4 THERE AND WHO IS MOST LIKELY TO EXPERIENCE IT? 11

INSECURE WORK OVER TIME AND 5 THE IMPACT OF COVID-19 24

THE IMPACT OF 6 INSECURE WORK 28

CONCLUSION AND 7 NEXT STEPS 32

8 ACKNOWLEDGEMENTS 34

9 ANNEX 35 1 EXECUTIVE SUMMARY 1. Executive Summary

When it comes to the labour As argued in this report, an A fifth (21 per cent) of workers in in certain sectors – ‘Agriculture market, the tremors of Covid-19 examination into the UK experience work insecurity forestry and fishing’ and are still being felt. While lockdown in the UK provides some cause - that’s 6.6m workers across the ‘Accommodation and food services’ restrictions have been lifted in for concern with regards to country. both have higher proportions of most corners of the economy, the Covid-19 recovery. The insecure work (52 per cent and 39 millions of workers across the particular issue of focus is the Of the 6.6m insecure workers, per cent respectively), while the country are already out of pocket prevalence of insecure work in the more than half (56 per cent) earn ‘financial and insurance activities’ due to the lengthy periods out UK – a common issue among the less than the real Living Wage of has a much smaller of work, particularly for those in UK workforce. For example, our £9.50 an hour outside of London insecure work population in hard-hit sectors more exposed to analysis finds that: and £10.85 in the capital – that’s proportional terms (7 per cent). lockdown measures. In addition, 3.7m workers in insecure work and the long-term impacts of Covid-19 earning below the Living Wage. on the labour market are still uncertain. So far, Insecure work is unevenly spread in the UK has been the ‘dog among regions of the UK. Wales and that hasn’t barked’ through the North East have comparatively high pandemic, though it is far from a levels of insecure workers (26 per guarantee that this will continue. cent and 25 per cent respectively), With the government’s - while Scotland, South East and Retention-Scheme () London all have slightly lower ending in September 2021, the proportions (20 per cent, 19 per cent main thrust of the economic and 18 per cent respectively). displacement from Covid-19 may emerge sometime after then.

Work insecurity is more prevalent

The insecurity complex: low paid workers and the growth of insecure work p. 3 1. Executive Summary

Polling found that 53 per cent of 17 per cent of workers had to pay Insecure work is evidently a i.e., by multiple demographics, shift workers receive less than a higher travel costs as a result of crucial feature of employment in regions, and industry sectors. weeks’ notice of their working hours, short notice for working hours, the UK, and will therefore need The third section details how shifts or work schedules, while 12 per shifts or work schedules, while 13 to be considered in the attempt insecure work has developed cent of shift workers receive less per cent had to pay higher childcare to rejuvenate the UK workforce over time, while also accounting than 24 hours. costs. This had a larger impact on through and beyond Covid-19. This for the impact of Covid-19. The low paid workers (defined as those report shows how ‘Living Hours’ final section outlines the impact A larger proportion (32 per cent) of earning below the Living Wage) – can be used as part of the solution. insecurity has on workers, with shift workers reported having less with 25 per cent of low paid workers As outlined in more detail later on, specific reference to the additional than four days’ notice for working paying additional transport costs ‘Living Hours’ is an accreditation costs that come with being an hours, shifts or work schedules than (compared to 15 per cent of those standard set and managed by insecure worker. having four weeks or more (20 per at or above the Living Wage) and Living Wage Foundation (LWF) cent). 23 per cent paying higher childcare which allows employers to provide costs (compared to 10 per cent of their employees with the security those at or above the Living Wage). and stability they need to make ends meet.

The remainder of this report will be set out as follows: the first section provides an overview of how work insecurity has developed in the UK, while also providing more details on our proposed solution – Living Hours. The second section outlines the scale of insecure work in the UK and breaks down how insecure work impacts different subgroups,

The insecurity complex: low paid workers and the growth of insecure work p. 4 2 INTRODUCTION 2. Introduction

As businesses and policy-makers increased employment and At the heart of this conundrum has grapple with the ongoing impact improved living standards is not been the trade-off between job Covid-19 is having on employment as linear as it once was. Poverty quantity and job quality, with the in the UK, some will hope the labour over the past decade has stayed post-crisis jobs boom seeing the market shows the kind of resilience remarkably constant, while child former prevailing over the latter. seen after the 2008 Financial Crisis. poverty has generally been higher The performance of the labour Despite the initial, and inevitable, between 2011-2020 than between market post-crash is therefore spike in unemployment during its 2000-2010.5 a double-edged sword, and the immediate aftermath (2008-2011), flipside of sustained employment uninterrupted jobs growth has While multiple factors are at growth has been the sharp fall been a defining feature of much play here, it is still the case that in real and productivity.8 of the post-crisis era. It speaks in 2018, more than half of people It is in this context that low paid volumes that UK unemployment living in poverty were in a working and insecure work has flourished, rate dropped to its lowest point in family6 - an unfavourable first for with research by the Resolution nearly half a century (3.8%) in Q1 the UK economy.7 The state of Foundation showing that as of 2018, 2019, little more than a decade after the labour market has therefore two thirds of the post-crisis jobs the crisis fully took shape in 2008.4 played a crucial role in the boom was in ‘atypical’ roles such economic position of low-income as self-employment, ‘zero hours Despite this rapid turnaround in households, and the insufficiency of contracts’ or agency work.9 job creation, living standards have employment in lifting people out of not followed the same trajectory, poverty requires further inspection. suggesting the link between

The insecurity complex: low paid workers and the growth of insecure work p. 5 2. Introduction

Despite a tightening labour market further depressing wages and While these factors may prompt Providing these workers with in the latter half of the decade, the pushing more workers into insecure more pessimistic forecasts for those decently paid and secure jobs insecure work population did not roles. at the bottom end of the UK labour should be a key part of any reduce by anywhere near enough market, it is feasible to suggest recovery that builds back a fairer to fallback in line with pre-crisis The end of the furlough scheme the impact of the Covid-19 on the society and stronger economy as levels. The knock-on effect is that in September 2021 will provide a nation’s low paid and insecure we emerge from this crisis. A key we have entered a new crisis with proper assessment of the health of workers may be more mixed. For element of this will be ensuring the structurally high levels of work the labour market, as government instance, the pandemic has placed Covid-19 jobs recovery process does insecurity. This is concerning for support for pandemic induced lay- a spotlight on the pay and not repeat the mistakes seen in the two reasons. offs finally comes to a close. Some conditions of many ‘Key Workers’ response to the previous crisis of businesses – particularly those in who have been vital in keeping us 2008. Indeed, if ‘build back better’ Firstly, it is those insecure workers high insecurity sectors which have safe over the last year. Social care is to be more than just a slogan, it is – particularly low paid insecure struggled through the pandemic workers, cleaners, and supermarket crucial that we do not simply build workers, that have borne the such as ‘Accommodation and food staff are among those who have off the back of low paid, insecure brunt of the economic downfall services’ or ‘Arts and entertainment’ continued to work throughout labour. from Covid-19, with this group will struggle when this is removed. successive lockdowns, often on low being more likely to be furloughed Workers in these industries will be pay and in insecure work. This may than those in more stable work or understandably fearful of losing serve as a catalyst for improved better paid work, suggesting these work - be it through reduced hours pay and conditions in these sectors workers are more exposed to the or unemployment. The removal and across the economy more labour market constraints imposed of the government’s safety net is broadly, with policy-makers and by the pandemic. Secondly, another therefore a pivotal moment in the businesses often pledging to ‘build concern is that Covid-19 may act as broader recovery. back better’. another accelerant to this process,

The insecurity complex: low paid workers and the growth of insecure work p. 6 2. Introduction

LIVING HOURS: Living Hours is effective

For this reason, amongst many Living Hours offers a practical and practical. It is an others, it is more crucial than ever solution that employers can adopt independent standard that firms provide workers with to help provide the security and with a robust methodology which ‘Living Hours’ – a standard set by stability that low paid workers need Living Wage Foundation which to make ends meet. The Living gives our organisation certainty that requires employers to provide their Hours campaign was developed we are providing our people with well workforce with stable, secure and over an 18-month period of paid, secure employment. It creates a predictable hours alongside a real consultation with workers, Living Living Wage.10 Accredited Living Wage Employers, trade unions and common understanding of these terms Hours employers are required to experts. This culminated in a set of and practices and this shared definition provide the following measures for measures to tackle the problems of is vital to improving the standard of their employees: under-employment and insecurity around working hours. The standard employment across the UK. We also • At least four weeks’ notice for was launched in June 2019 and support Living Hours as an investor, as shifts, with guaranteed payment there are now five accredited Living if shifts are cancelled within this Hours Employers, including abrdn, this plays a role in creating stronger and . Aviva and SSE. more resilient economies.

• The right to a contract that Here’s what some of them said Meredith Adams, reflects accurate hours worked. about the importance of Living Sustainability Manager - Social Impact, abrdn Hours and its impact on their • A guaranteed minimum of 16 business: hours a week (unless the worker requests fewer). More details on how the measures were developed, and why they are important to insecure workers can be found in Annex 1 of this report. The insecurity complex: low paid workers and the growth of insecure work p. 7 2. Introduction

As a co-operative, We have seen the It’s important Businesses our organisation way that many organisations’ need to provide has a fundamental investors and like ours who are jobs that treat belief in fairness and business customers now ask willing to commit to Living and pay people fairly. We alleviating poverty. Being whether we pay the Living Hours.. To consistently deliver should not underestimate a Living Hours employer Wage. Increasingly it seems on the promises made to the impact unstable and demonstrates we are putting that this commitment shows clients, you need a reliable and unpredictable hours have these values into to practice, how a company operates and dedicated workforce. You can’t on the individual, and on to protect our employees from treats the people who work build that team and expect their families too. Signing up in-work poverty. It is also for it, which can be seen an people to be motivated on a to Living Hours stands for about providing stability to indicator of wider sustainable zero-hours contract. Living providing financial clarity and the business – we know there practices. In time, we hope that Hours is a step in the right certainty. That means happier won’t be a turnaround of staff, our stakeholders will ask about direction. It shows a level of and healthier colleagues which meaning our business and Living Hours too alongside the commitment to that individual is good for customers, business employees can plan for the Living Wage. and everyone benefits. and society. future. Kate Wallace Lockhart, Robert Hoon, Danny Harmer, Head of Social Impact, SSE PLC Managing Director, Chief People Officer, Carol McHarg, Datagraphic Aviva Chief Executive, 1st Alliance Credit Union

The insecurity complex: low paid workers and the growth of insecure work p. 8 3

METHODOLOGY & DEFINITION OF INSECURE WORK p. 9 3. Methodology & definition of insecure work

We define insecure work as people Unless stated otherwise, the how many hours and how shift in work who meet at least one of quantitative research in this report uncertainty impacts them. Results the following criteria: is from quarterly Labour Force on short shift notice periods in Surveys (LFS’) and annual Family this survey are typically lower People in non-permanent work Resource Surveys (FRS’) dating than when we ran a similar poll (casual, seasonal jobs, fixed- back to the first quarter of 2016. in April 2021, which may suggest 1 term and agency) excluding All of the data that pertains to the that seasonality may impact the anyone who said they did not want current state of work insecurity in findings. The extent to which they a permanent job. the UK (i.e., not timeseries analysis) can be considered representative of is from the four quarterly LFS’ of a full year is therefore limited. People who self-report volatile 2020 and the 2019-20 FRS. To avoid pay and hours including those duplicating our sample, the LFS 2 on zero hours contracts. was used to evaluate employees exclusively, and the FRS was used People who self-report to analyse self-employed workers constant pay but volatile exclusively. More details on the 3 hours. methodology can be found in Annex 2 of this report. Low paid self-employed 4 people. LWF also commissioned Survation to survey 2021 employees on the Those that met more than one of amount of notice they receive of these standards were not double their working hours, shifts or work counted. schedules, whether they have experienced shift cancellations,

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STATE OF PLAY: HOW MUCH INSECURE WORK IS THERE AND WHO IS MOST LIKE TO EXPERIENCE IT? p. 11 4. State of play: how much insecure work is there and who is most likely to experience it?

As outlined above, insecure work INSECURE WORK, LOW PAY AND THE Graph 1: Insecure work and below Living Wage is a prominent feature within the LIVING HOURS STANDARD: UK workforce. As shown in Graph 1, status UK, 2020 there are 6.6m workers in insecure Data from the polling provided work in the UK, and this includes further evidence of how insecure Insecure work 3.7m who are in insecure work and work disproportionately impacts earning below the Living Wage. low paid workers. It found that These account for 21 per cent and 12 while sizeable proportions of per cent of UK workers respectively the workforce work in conditions Insecure work & (including self-employed workers). that fall short of the Living Hours below Living Wage The issue of insecure work is standards, it was those in low intrinsically connected with low pay that were typically at a much pay. For example, 50 per cent of higher risk. For example: 0M 2M 4M 6M 8M workers that earn below the Living Wage are also in insecure work. • Having at least four weeks’ notice Source: Living Wage Foundation Analysis of four Quarterly Labour Force Surveys, January-March 2020, April-June 2020, July-September 2020, October-December 2020 and Family Resource Survey 2019-2020 Contrastingly, just 12 per cent of for working hours, shifts or work those that earn at or above the schedules: 43 per cent of the Living wage are in insecure work. working population (80 per cent This is why below Living Wage of shift workers) receive less than workers account for more than half four weeks’ notice for working of the insecure work population, hours, shifts or work schedules. but less than a quarter of the total When it comes to below Living working population. Wage workers, just six per cent receive four weeks’ notice for shifts (nine per cent of below

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Living Wage shift workers), • A minimum of 16 hours of work • A contract that reflects actual A lack of known compared to 11 per cent of those per week (unless employee hours worked: 19 per cent of at or above the Living Wage (23 themselves request to work workers typically work more than hours makes per cent of shift workers at or fewer): 21 per cent of workers do their contracted hours, this is the life choices very above the Living Wage). not have the guarantee of at least case for 32 per cent of below difficult and can lead to 16 hours per week, and 50 per Living Wage workers and 16 per • A guarantee of full payment cent of which would like to work cent of workers at or above the debt, stress and poverty. if shifts are cancelled: 26 per more hours if given the option. 40 Living Wage. This can lead to illness and cent of the working population per cent of workers earning below in-work poverty, driving have experienced unexpected the Living Wage are not cancellations of shifts, and of guaranteed to work at least 16 absenteeism, which impacts those, 24 per cent receive no hours per week, and 48 per cent productivity, creativity and payment and 81 per cent get would choose to work more hours shifts cancelled without full pay. if given the option. For those at or the wider economic outlook. Below Living Wage workers above the Living Wage, 17 per If all those organisations are more likely to have shifts cent are not guaranteed to work who can commit to Living cancelled (42 per cent compared at least 16 hours per week and 52 to 22 per cent of those at or per cent would choose to work Hours do so, we collectively above the Living Wage) and are more hours if given the option. sign-up to make life better less likely to receive full payment for everyone and who does when they are cancelled (10 per cent compared to 23 per cent). not want to see that! Robert Hoon, Managing Director, Datagraphic SHIFT NOTICE PERIODS:

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Looking at the data for each of Graph 2 provides a more detailed Graph 2: Minimum amount of notice of working hours, these measures in more depth, breakdown of the shift notice shifts or work schedules by Living Wage status (shift large proportions of workers not periods that workers receive by only fall short of the Living Hours their Living Wage status. It is workers only), UK, 2021: Below Living Wage standards, but do so by quite some notable, if not surprising, that low At or above Living Wage margin. For instance: paid workers are not only less likely 28% to receive four weeks’ notice for • A larger proportion of shift shifts, but are also more likely to workers receive less than four receive shorter shift notice periods 21% days’ notice of their working hours, overall, with two thirds (66 per shifts or work schedules (32 per cent) of low paid shift workers 14% cent) than those who receive four typically receiving less than a weeks or more (20 per cent). weeks’ notice for shifts, compared 7% to 49 per cent of those at or above • 53 per cent of shift workers the Living Wage. 0% receive less than a weeks’ notice Less than 24 1-3 days 4-6 days 1-2 weeks More than 4 weeks or of their working hours, shifts or The reasons workers cited for hours 2 weeks but more work schedules – 28 per cent of receiving less than four weeks’ less than 4 weeks the total working population. notice for working hours, shifts or Source: LWF commissioned poll conducted by Survation of 2021 workers, fieldwork 9-16 June 2021. work schedules were wide-ranging. • 12 per cent of shift workers receive As shown in Graph 3, the most less than 24 hours’ notice for their oft-cited reasons were primarily working hours, shifts or work circumstantial, such as covering a schedules – six per cent of the colleague’s shift or being offered total working population. paid . However, there were

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Graph 3: Reasons for not receiving four weeks’ notice for SHIFT CANCELLATIONS: working hours, shifts or work schedules, UK, 2021: also noteworthy examples of short It is not just short shift notice notice periods being customary periods that is the issue for insecure Administrative among employees – such as those workers. Shifts being cancelled errors by employers that cited being offered extra are also a real problem - perhaps Mandatory shifts at the last minute, and those more damagingly if those shifts are that is unpaid whose working rotas were set out being cancelled without pay being Unpaid overtime with less than four weeks’ notice. covered. Losing shifts without pay Salaried but required to do A particularly worrying finding can create budgeting problems ad hoc out-of-hours work was that unpaid overtime and for any worker, but for those Mandatory training mandatory unpaid training also also suffering from low pay, shift that is paid featured for around a tenth of the cancellations can mean workers Increase in workload for employer workers with short shift notice cannot afford to pay for essentials. Working rota at less periods. than 4 weeks’ notice Around a quarter (26 per Offered extra shifts cent) of workers in the sample at last minute had experienced unexpected Paid overtime cancellations of shifts they had been due to work in the past To cover for another employee 12 months. This was even more 0% 10% 20% 30% 40% common among those earning below the Living Wage – 42 per Notes: graph excludes those that ticked ‘None of the above’ (9 per cent) or ‘other’ (1 per cent). Source: LWF commissioned poll conducted by Survation of 2021 workers, fieldwork 9-16 June 2021. cent of whom had experienced this compared to 22 per cent of those at or above the Living Wage. Of those that had their shifts cancelled, just

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Graph 4: Proportion of payment that is paid when shifts are CONTRACTS AND ACTUAL HOURS WORKED: cancelled by Living Wage status, UK, 2021: More often than not, low paid goes hand in hand with low pay, Below Living Wage workers will not have the savings those working fewer than 16 hours At or above Living Wage buffer to cover temporary periods per week were more likely to be 28% with little or no work. Having a paid below the Living Wage than contract with at least 16 hours work those working 16 hours or more – 35 per cent compared to 14 per cent. 21% guaranteed is therefore crucial to ensure low paid workers can cope financially as and when working Our analysis also found that low 14% hours drop. This is why Living Hours paid workers were more likely to mandates that workers have a work more hours than set out in 7% guarantee of at least 16 hours per their contract than those with better week, unless they themselves opt to pay. 32 per cent of below Living 0% work fewer hours. Wage workers worked more hours 0% 1-24% 25-49% 50-74% 75-99% 100% than their contract guaranteed, Source: LWF commissioned poll conducted by Survation of 2021 workers, fieldwork 9-16 June 2021 Data from the survey found that compared to 16 per cent of workers around a fifth (21 per cent) of at or above the Living Wage. workers do not have the guarantee a fifth (19 per cent) had all of their workers were more likely to receive of 16 hours each week. Of these, payments covered – this was less nothing when shifts are cancelled half (50 per cent) of those without common than receiving nothing (28 per cent compared to 23 per the guarantee of 16 hours said they when shifts are cancelled, which cent) and were less likely to receive would choose to work more than was the case for 24 per cent of full payment (10 per cent compared 16 hours a week if they were given those who had experienced shift to 23 per cent). the option. In further support of the cancellations. Below Living Wage idea that insecure work usually

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WHO IS MOST IMPACTED BY Graph 5: Insecure work and below Living Wage status by Sex and Working Patterns, UK, 2020 INSECURE WORK Insecure work Insecure work and below Living Wage

SEX: 40% Males and females experience workers and full time male workers, similar levels of insecure work, which is notably larger than for 30% with 21 per cent of working males female workers. This corresponds experiencing insecurity compared with previous LWF analysis on low 20% to 20 per cent of working females. pay, which found that for part time jobs, males were more likely to be That said, female workers are more 10% likely to experience certain forms paid below the Living Wage than of insecurity compared to males – females (40.1 per cent compared 0% such as having a temporary job or to 34.5 per cent). But this is in the Full time Part time Full time Part time being underemployed, while males context of the majority (75 per male male female female are more likely to be in low paid cent) of all part time jobs being Source: Living Wage Foundation Analysis of four Quarterly Labour Force Surveys, January-March 2020, April-June self-employment. held by females, meaning that 2020, July-September 2020, October-December 2020 and Family Resource Survey 2019-2020 the number of part time jobs paid Looking at the data by both sex below the Living Wage held by or work schedules between males are almost equally likely to and working patterns, Graph 5 females (2 million) is still over 2.5 and females. For instance, 19 per receive less than a weeks’ notice shows that part time male workers times that of males. cent of men in receive for working hours, shifts or work are the most likely of all to be in at least four weeks’ notice for schedules (54 per cent and 52 insecure work – including low paid Similarly, there are only marginal their shifts, nearly the same as for per cent) respectively. The same insecure work. It also illustrates the differences when it comes to notice women (20 per cent). Moreover, is true for shift cancellations, with difference between part time male periods for working hours, shifts males and females in shift work 26 per cent of both males and

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females experiencing unexpected with the likelihood of being in Graph 6: Insecure work and below Living Wage status across cancellations of shifts in the past insecure work falling until the ’30- 12 months. That said, females were 34’ and above age groups, and then age bands, UK, 2020 more likely to report receiving flatlining until you get to workers Insecure work Insecure work and below Living Wage no payment when shifts were aged ’60-64’ and above, where 50% cancelled (29 per cent compared to the likelihood of experiencing work 20 per cent for males).11 insecurity increases. 37.5%

AGE: When you 25% When it comes to insecure look at the work across age bands, there demographics 12.5% is a distinct ‘U-shaped’ trend in of who doesn’t have workers’ likelihood of experiencing 0% insecurity. As can be seen in Graph access to secure work, it 16-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70 6, the youngest workers, those aged reinforces the fact that Source: Living Wage Foundation Analysis of four Quarterly Labour Force Surveys, January-March 2020, April-June 16-19, are the most likely of all to 2020, July-September 2020, October-December 2020 and Family Resource Survey 2019-2020 be in insecure work and the second increasing pay isn’t the most likely to be in insecure work only answer. Living Hours It is not surprising to see this play by definition have less experience and earn below the Living Wage. has a significant role to out in this way. Insecure work is and those aged 16-19 are typically Meanwhile, the oldest workers heavily associated with labour those that leave with – aged 70 and above, are the play in reducing a range of market vulnerability, as those with few or no qualifications, and second most likely to be in insecure inequality gaps. less formal bargaining power, those therefore are less likely to take up work and the most likely to be in with fewer qualifications/experience less insecure and better paid roles insecure work and earn below the Meredith Adams, and/or fewer options elsewhere, are which slightly older more qualified Living Wage. The U-shaped trend Sustainability Manager - therefore more likely to suffer from workers tend to occupy. Older continues through the age groups, Social Impact, abrdn insecure work.12 Younger workers workers on the other hand – despite

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having a lifetime of experience – low insecurity groups are Indian Graph 7: Insecure work and below Living Wage status will sometimes work into their old workers (16 per cent) and white age as a result of being unable to workers (19 per cent). across ethnicity groups, UK, 2020 retire due to limited pots Insecure work Insecure work and below Living Wage – another development heavily It is unsurprising that the ethnicity- associated with low pay.13 However, insecurity picture is effectively an it is also the case that older workers inversion of the median pay rates Chinese tend to prefer flexibility as they seen among different ethnic groups, get older and approach , with Chinese and Indian workers Indian which may also explain this trend. having the highest median pay and the lowest levels of work insecurity, White ETHNICITY: while Pakistani and Bangladeshi Any other Asian workers have the lowest median background Previous research has shown that pay with the highest levels of Other ethnic group racialised communities face a insecurity. In simpler terms – and as Mixed/Multiple greater risk of insecure work than shown in Graphs 7 and 8, low paid ethnic groups 14 white workers. Our research ethnic groups have a comparatively Black/African/ suggests this continues to be the high likelihood of experiencing work Caribbean/Black British case. For instance, 41 per cent of insecurity, while for higher paid Pakistani Bangladeshi workers experience ethnic groups, the opposite is true. work insecurity, while the same is Bangladeshi true for around a third (33 per cent) Our commissioned polling found 0% 12.5% 25% 37.5% 50% of Pakistani workers and 28 per that Black and Minority Ethnic 15 Source: Living Wage Foundation Analysis of four Quarterly Labour Force Surveys, January-March 2020, April-June 2020, cent of Black Workers. All of these (BAME) workers were also more July-September 2020, October-December 2020 and Family Resource Survey 2019-2020 are well over the total UK average likely to have shorter shift notice of 21 per cent. Contrastingly, a small periods than white workers. For minority (11 per cent) of Chinese example, 58 per cent of BAME shift workers are in insecure work. Other workers reported having less than a

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Graph 8: Median Hourly Pay by ethnic group, UK, 2019 weeks’ notice for working hours, compared to 21 per cent of white shifts or work schedules, compared workers).16 to 52 per cent of white workers. Pakistani It was also the case that BAME DISABILITY STATUS: workers were more likely to report Bangladeshi being in work that included shift Disabled workers are at a higher Other ethnic group work or hour variability altogether. risk of experiencing work insecurity Consequently, those with less than than non-disabled workers. For Any other Asian background a weeks’ notice for shifts comprise example, more than a quarter Black/Africa/ a much larger proportion of the (26 per cent) of disabled workers Caribbean/Black British BAME workforce (42 per cent) than are in insecure work compared White the white workforce (26 per cent). to 20 per cent for those without a disability. Similarly, 15 per cent of Mixed /Multiple ethnic groups BAME workers were also more likely disabled workers are in insecure to report shifts being cancelled work and earn less than the Living Indian unexpectedly than white workers Wage compared to 11 per cent for

Chinese (36 per cent and 24 per cent non-disabled workers. This is not respectively). That said, BAME surprising, research by the TUC £8.00 £10.00 £12.00 £14.00 £16.00 workers were less likely to report found that disabled workers earn

Source: Living Wage Foundation Analysis of ONS data, Ethnicity pay gaps: 2019 receiving no payment when 19.6 per cent less an hour than non- shifts were cancelled (16 per cent disabled workers, are more likely to compared to 26 per cent of white be unemployed and are more likely workers), while also being less likely to be on a ‘zero-hours contract’.17 to receive full payment (10 per cent Further to this, polling showed

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disabled workers to be at greater their full payment, compared to 22 Graph 9: Insecure work and below Living Wage status risk of short shift notice periods per cent for non-disabled workers.18 as well as shift cancellations. For by Disability status, UK, 2020 example, over half (58 per cent) REGION: of disabled workers had less than a weeks’ notice for working hours, The proportion of workers in shifts or work schedules, while the insecure work differs from region- Non-disabled worker same was true for 51 per cent of to-region. As shown in Graph 10, non-disabled workers. As was the London is the region with the lowest case with BAME workers, disabled proportion of insecure workers – workers were also more likely with just 18 per cent of the working than non-disabled workers to be population experiencing insecurity Disabled worker in employment that involves shift in the capital. Other low insecurity work or hour variability. As a result, areas are Scotland and South East. those with less than a weeks’ notice for shifts accounted for 41 per cent Meanwhile, more than a quarter 0% 7% 14% 21% 28% of disabled workers compared to 26 (26 per cent) of workers in Wales Source: Living Wage Foundation Analysis of four Quarterly Labour Force Surveys, January-March 2020, April-June 2020, per cent of non-disabled workers. experience work insecurity, while July-September 2020, October-December 2020 and Family Resource Survey 2019-2020 the same is true for 25 per cent of Insecure work Insecure work and below Living Wage Similarly, disabled workers were workers in North East and 23 per more likely to have experienced cent in the South West and East shift cancellations than non- of England respectively. These are disabled workers (38 per cent the four areas with the highest compared to 23 per cent). percentage of insecure workers Moreover, when shifts were as a proportion of the working cancelled unexpectedly, just 11 per population. Interestingly, of the four, cent of disabled workers received only the North East features in the

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Graph 10: Insecure work and below Living Wage status by top four regions when it comes average hourly pay for ‘Financial to below Living Wage jobs, while and insurance activities’ – the Region of the UK, 2020 the East of England is among the sector with the lowest proportion of bottom four for the same measure,19 insecure workers, is £28.52 an hour Insecure work Insecure work and below Living Wage suggesting the correlation between (the highest among all sectors),

London below Living Wage jobs and while just 3.7 per cent earn below insecure work is weaker when the Living Wage, the second South East applied to regions of the UK. lowest. This trend continues when Scotland applied further down, with workers West Midlands SECTOR: in third most impacted sector, ‘Accommodation and food services’ There is a significant disparity having the lowest average wage East Midlands between the levels of insecurity and the largest proportion of below North West seen among certain sectors, with Living Wage workers. Yorkshire & Humberside sectors with lower rates of pay tending to have higher proportions East of England of insecure work, while the reverse South West is true for higher paid sectors. North East For example, average pay among ‘Agriculture, forestry and fishing’ Wales – the sector with the highest 0% 7% 14% 21% 28% proportion of insecure workers (see Graph 11), is just £12.31 an hour – the Source: Living Wage Foundation Analysis of four Quarterly Labour Force Surveys, January-March 2020, April-June 2020, July-September 2020, October-December 2020 and Family Resource Survey 2019-2020 second lowest among all sectors, and more than a third (32 per cent), earn less than the Living Wage – the third highest. Contrastingly,

TheLife oninsecurity low pay in complex: the pandemic low paid workers and the growth of insecure work p.p. 2222 4. State of play: how much insecure work is there and who is most likely to experience it?

Graph 11: Top ten industries (one-digit SIC code) by Sectors with percentage of insecure workers and below Living Wage more entry level insecure workers, 2020: jobs such as hospitality and retail have Insecure work Insecure work and below Living Wage been significantly impacted by the pandemic. When you Heath and social work look at the demographics of Construction who doesn’t have access to Wholesale, retail, secure work, it reinforces the repair of vehicles Admin and fact that increasing pay isn’t support services the only answer. Living Hours Transport and storage has a significant role to play in Other service activities reducing a range of inequality Arts, entertainment gaps. and recreation Accommodation and Meredith Adams, food services Sustainability Manager - Agriculture, forestry and fishing Social Impact, abrdn 0% 15% 30% 45% 60%

Source: Living Wage Foundation Analysis of four Quarterly Labour Force Surveys, January-March 2020, April-June 2020, July-September 2020, October-December 2020 and Family Resource Survey 2019-2020

TheLife oninsecurity low pay in complex: the pandemic low paid workers and the growth of insecure work p.p. 2323 5

INSECURE WORK OVER TIME AND THE IMPACTLife on low pay in the pandemic OF COVID-19 p.p. 2424 5. Insecure work over time and the impact of Covid-19

As mentioned in the introductory tends to zig-zag from season-to- Knowing that chapter, insecure work in the UK season, Covid-19 saw the insecure increased markedly after the workforce drop by a total of 1m during Covid-19, 2008 Financial Crisis. One might workers between Q1-Q2 2020, so many workers expect this to have dropped as the largest quarterly decrease of had to go into work day in, the labour market tightened and the last five years. This is to be the employment rate increased, expected. Previous analysis has day out, putting themselves but the data points to a different shown insecure workers were four on the front line, often on low picture. But for a sustained plummet times more likely to lose their job wages and insecure terms of between Q3 2016 and Q2 2017 than people on permanent contract (caused mainly by Brexit induced during the initial outbreak of employment, reinforces the low growth in high insecurity Covid-19.21 importance of the Living Wage sectors),20 it has typically zig- zagged from quarter-to-quarter. and Living Hours. This is likely a result of seasonality Meredith Adams, trends in insecure work. Moreover, Sustainability Manager - the number of insecure workers in Social Impact, abrdn the UK did bounce-back from the initial drop to the point where the number of insecure workers was about as high immediately before the pandemic (Q1 2020) as in Q3 2016.

Covid-19 has had a serious impact on the levels of insecure work in the UK. As can be seen in Graph 12, while insecure work

TheLife oninsecurity low pay in complex: the pandemic low paid workers and the growth of insecure work p.p. 2525 5. Insecure work over time and the impact of Covid-19

Graph 12: Number of insecure workers (employees only), UK, Q1 2016 – Q4 2020:

5.9M Covid-19 on the labour market – is mainly representative of those on

5.3M which has consistently found that the furlough scheme and/or those low paid employees more likely to with Covid-19 itself. have lost work – it is interesting 4.7M that this remains the case when When it comes to temporary both low paid and better paid periods out of work, the longer- 4.1M workers are also in insecure work. term trends are less favourable to low paid insecure workers, with 3.5M Graph 14 provides further insights more than a fifth (22 per cent) Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020 into the relationship between reporting still being away from insecure work, low pay and how work in Q4 2020, compared with 15 Notes: Graph does not include self-employed workers as quarterly data is not available via Family Resources Survey and LFS does not collect income data for self-employed workers. Larger ‘dots’ indicate yearly peak. Source: Living Wage Foundation Analysis of twenty consecutive Quarterly Labour Force Surveys, January-March 2016 October December 2020. Covid-19 has impacted certain per cent of those in insecure work workers. It shows that during and earning at or above the Living Indeed, while the number of the height of the pandemic (Q2 Wage. Indeed, when it comes to the Further to this, and as can be seen insecure workers earning below the 2020), around half of below Living proportion of workers temporarily in Graph 13, this exodus of insecure Living Wage decreased 34 per cent Wage workers were temporarily away from work, low paid insecure workers from the labour market between Q1-Q4 2020, the number away from work – and this was workers are the group which is the was disproportionately driven by of insecure workers at or above the the case for both those in and out furthest from the pre-pandemic insecure workers that were also Living Wage only decreased by of insecure work. Before Covid-19, picture. earning below the Living Wage. 12 per cent. While these findings being temporarily away from work Interestingly, this was not the case correspond with other research would usually represent sickness for better paid insecure workers. conducted into the impact of absence or holidays, but since then

TheLife oninsecurity low pay in complex: the pandemic low paid workers and the growth of insecure work p.p. 2626 5. Insecure work over time and the impact of Covid-19

Graph 13: Number of insecure workers (employees only), by Graph 14: Employees temporarily away from work (mainly below Living Wage status UK, Q1 2016 – Q4 2020: Furlough as of Q2 2020), UK, Q1 2016 – Q4 2020:

3.0M 50%

2.5M 37.5%

2.0M 25%

1.5M 12.5%

1.0M 0% Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020 Q1 2016 Q3 2016 Q1 2017 Q3 2017 Q1 2018 Q3 2018 Q1 2019 Q3 2019 Q1 2020 Q3 2020

Source: Living Wage Foundation Analysis of twenty consecutive Quarterly Labour Force Surveys, January-March 2016 October December 2020. Below Living Wage in insecure work At or above Living Wage in insecure work Insecure worker below Living Wage Below Living Wage not in insecure work At or above Living Wage not in insecure work Insecure worker at or above Living Wage

Notes: Graph does not include self-employed workers as quarterly data is not available via Family Resources Survey and LFS does not collect while the same was true for 17 per income data for self-employed workers. Those earning at or above the cent of those at or above the Living Source: Living Wage Foundation Analysis of twenty consecutive Quarterly Labour Force Surveys, January-March 2016 October December 2020. Living Wage were considerably less Wage and not in insecure work. likely than those below the Living Therefore, when it comes to losing Wage to report being away from work or being furloughed as a result work when Covid-19 hit. That said, of Covid-19, it appears that low pay it was still the case that 25 per is the more influential factor of the cent of those that were at or above two, albeit insecure work does tend Living Wage and in insecure work to exacerbate this issue for low paid reported being away from work, workers.

TheLife oninsecurity low pay in complex: the pandemic low paid workers and the growth of insecure work p.p. 2727 6

THE IMPACT OF INSECURE WORK p. 28 6. The impact of insecure work

Sufficient pay and reliable hours Wage workers are more likely Graph 15: Impact of short notice for working hours, shifts or are fundamental to having a to report short notice periods decent quality of life. Data from for working hours, shifts or work work schedules has had on below Living Wage workers over the Survation poll illustrated schedules having a negative the past 12 months, UK, 2021: how low paid, insecure work impact than a positive impact negatively impacts the core in almost all of the measures NET Negative NET Positive elements of worker’s physical, studied. mental and financial wellbeing. As Relationship with shown in Graph 15, below Living It is telling, if not surprising, that friends and family as much as 40 per cent of low paid workers said short notice Mental health People without periods had negatively impacted job security can’t their ability to plan their work and Physical health personal lives. Indeed, it is not save money for difficult to see how being called Household finances emergencies and often have to into work at the last minute, or borrow money at high interest having shifts cancelled without Ability to budget consultation can wreak havoc rates, which compounds the on one’s ability to plan and Ability to plan work/ personal life problem. We see these issues on balance work and non-work- related commitments. Sizeable a daily basis and the impacts proportions of insecure workers 0% 11% 22% 33% 44% they have on people’s lives. also reported short shift notice Source: LWF commissioned poll conducted by Survation of 2021 workers, fieldwork 9-16 June 2021. periods having a negative impact Carol McHarg, on their mental and physical Chief Executive, health (42 per cent and 36 per 1st Alliance Credit Union cent respectively).

The insecurity complex: low paid workers and the growth of insecure work p. 29 6. The impact of insecure work

Graph 16: Consequences of short notice for working hours, However, the impact on worker’s shift notices have had to pay financial standing is not limited higher transport costs, compared shifts or working schedules, UK, 2021: to income, but also, outgoings. to 15 per cent of those at or above Below Living Wage This can be referred to as the Living Wage. At or above Living Wage the ‘insecurity premium’. The insecurity premium refers to 40% the extra costs of purchasing Knowing when things at the last minute, and I’ll be working in 30% with insecure workers, will often manifest through purchases that advance gives me enable them to go into work 20% the security of knowing the without much notice, such as last income I’ll have at the end of minute transport or childcare 10% costs. every month and to budget. It also allows me to plan my 0% For example, our polling found childcare and responsibilities Cancellation of social Higher travel Higher childcare that 17 per cent of workers had plans/occasions costs costs to pay higher travel costs due to outside of work. I have Source: LWF commissioned poll conducted by Survation of 2021 workers, fieldwork 9-16 June 2021. short notice for working hours, friends who don’t have these shifts or work schedules, and 13 per cent had done the same with guarantees – it makes it A similar proportion (35 per cent) reliable hours, workers have childcare costs. As outlined in impossible for them to know of workers said that short shift a limited ability to predict the Graph 16, it is the below Living notice periods had a negative amount of income that is coming if they can pay the bills at the Wage workers that bear the brunt impact on their finances and in from week-to-week and month- of this problem. For instance, a end of the month. ability to budget respectively. to-month, making financial quarter (25 per cent) of below This is not unexpected – without planning nigh on impossible. Employee, Living Wage workers on short 1st Alliance Credit Union

The insecurity complex: low paid workers and the growth of insecure work p. 30 6. The impact of insecure work

My mental The real Living Wage movement has been an incredible health can phenomenon, championing the fundamental truth that fluctuate, people should be able to earn enough to live a decent so the commitment to life. Living Hours is the other side of that coin. The amount of pay predictable working employees take home can be affected by irregular and unpredictable hours means I don’t hours. Like with our Living Wage accreditation, the most important have to worry about my impact of Living Hours is that, in time, it will flow through our supply income at the end of the chain activities and benefit those working regularly on our behalf too. Additionally, a similar proportion month. It is the right thing to do and we are very proud to have achieved this (23 per cent) of below Living accreditation and hope it will help show others the way. Wage workers have had to pay Employee, SSE PLC higher childcare costs because of this, while the same is true for just John Stewart, 10 per cent of those at or above HR Director, SSE PLC the Living Wage. Finally, even the non-financial consequences of short shift notice periods are SSE’s commitment to Living Hours has given worse for those earning below the me stability and peace of mind through the Living Wage – with 37 per cent of pandemic. Accommodating work patters have this group having to cancel social plans/occasions due to short shift given me the ability to fit in family time around work. notice compared to 24 per cent of those at or above the Living Wage. Employee, SSE

The insecurity complex: low paid workers and the growth of insecure work p. 31 7

CONCLUSION AND NEXT STEPS p. 32 7. Conclusion and next steps

Covid-19 has altered our their employees, including through understanding of what we can providing them with a Living Hours IF YOUR expect from employers and contract. ORGANISATION employees alike, and many will hope the pandemic acts as Much like the Living Wage 20 years IS INTERESTED IN a catalyst for better pay and ago, we are just at the beginning conditions for the nation’s low paid of the Living Hours journey. We JOINING US ON THIS and insecure workers. However, already have five organisations as this research has shown, the signed up, with over 30,000 EXCITING JOURNEY, early signs are not encouraging. workers covered by the guarantees We entered the pandemic with that come with Living Hours. We will PLEASE GET IN TOUCH historically high levels of insecurity, continue to work with businesses WITH THE LIVING and these workers are the most from within and outside our likely of all to have been out of work network to provide Living Hours HOURS TEAM AT during the pandemic. alongside the real Living Wage. As the analysis demonstrates, those in THE LIVING WAGE While economic forecasts are not low pay are also those most likely particularly buoyant – we know to be in insecure work, trapping FOUNDATION first hand the difference that them in in-work poverty. In doing providing Living Hours alongside so, we will be able to further deliver the real Living Wage can have on our shared mission: to tackle in- LIVING.HOURS@ for these workers and the firms work poverty in the UK. that hire them. We encourage LIVINGWAGE.ORG.UK. employers to consider how they may provide a better settlement to

The insecurity complex: low paid workers and the growth of insecure work p. 33 8. Acknowledgements

8 ACKNOWLEDGEMENTS

The Living Hours programme was Tomlinson (Resolution Foundation), We would also like to thank the designed and developed by the Meredith Adams (abrdn), Kate following for taking part in the Case Living Wage Foundation and is Wallace Lockhart (SSE), Afzal Study interviews used in this report: managed by Dan Howard. Rahman (TUC), Bishop Paul Butler We want to thank abrdn, Aviva, (Diocese of Durham), and Heather Meredith Adams, Sustainability Richer Sounds and SSE for being Carey (Work Advance). With Manager - Social Impact, abrdn Founding Partners of Living Hours particular thanks to Paul Burke Robert Hoon, Managing Director, and supporting this report. (Carnstone Partners Ltd) and Julie Datagraphic We would also like to thank our Abraham (Richer Sounds), for Carol McHarg, Chief Executive, 1st Steering Group for this project chairing the Steering Group. Alliance Credit Union who provided invaluable strategic Lesley Prandstatter, Head of guidance and leadership: Corporate Procurement, abrdn Andrew Selfridge, Development Stuart Wright (Aviva), Lizzie Flew Project Manager, SSE (Child Poverty Action Group), John Stewart, HR Director, SSE PLC Matthew Bolton (Citizens UK), Jeff Kate Wallace Lockhart, Head of Bakes (IKEA), Martin Wayman (ISS), Social Impact, SSE PLC Louise Woodruff (JRF), Jatin Patel Employees of 1st Alliance Credit (KPMG), Ben Anderson (Landsec), Union and SSE Kate Attwooll (Landsec), Daniel

The insecurity complex: low paid workers and the growth of insecure work p. 34 9. Annex 9 ANNEX 1. LIVING HOURS

The Living Wage campaign is solution that employers can adopt relevant third-party staff covered It is well-known that low paid based on the belief that no one to help provide the security and by the Living Wage commitment, workers often fall victim to the should be working full time and still stability that low paid workers need employers are committing to ‘poverty premium’. The poverty earning less than they need to live. to make ends meet. The Living provide workers with secure hours premium refers to “the extra Hours campaign was developed and predictable shifts. This means costs people on low incomes However, levels of in-work poverty over an 18-month period of continuing to build relationships and in poverty pay for essential are also affected by the number consultation with workers, Living with employees based on dignity products and services. Essentials and security of hours people work. Wage Employers, trade unions and and respect, as well as shaping such as energy, loans and credit Whilst many people choose to work experts. This culminated in a set of employment cultures with shared cards with high interest rates; part time and flexibly to balance measures to tackle the problems of responsibility and reciprocity at and insurance that costs more in work with caring responsibilities under-employment and insecurity their heart. deprived areas”.23 The insecurity and other commitments, these around working hours. premium refers to the extra costs jobs are more likely to be low paid, THE LIVING HOURS MEASURES: workers have to cover as a result of and involve casualised working Living Hours launched in June 2019 being called into work, such as last- arrangements with one-sided and there are now five accredited AT LEAST FOUR WEEKS’ minute childcare or transport costs. flexibility. Living Hours Employers: abrdn, The insecurity premium can also Aviva, Datagrphic, SSE and 1st 1 NOTICE FOR SHIFTS, WITH manifest through unexpected shift That is why we are asking Alliance Credit Union. GUARANTEED PAYMENT cancellations on short notice and employers to provide Living Hours IF SHIFTS ARE CANCELLED without compensation. alongside the real Living Wage. By offering Living Hours to directly employed staff who might be WITHIN THIS NOTICE Having at least four weeks’ notice Living Hours offers a practical at risk of in-work poverty and PERIOD. for shifts helps to combat these

The insecurity complex: low paid workers and the growth of insecure work p. 35 9. Annex

challenges facing low paid, insecure THE RIGHT TO A A GUARANTEED for at least 16 hours per week in workers. Firstly, sharing rotas four order to avoid benefit sanctions weeks in advance means workers 2 CONTRACT THAT 3 MINIMUM OF 16 HOURS (reductions or pauses in UC will know the amount of work REFLECTS ACCURATE A WEEK (UNLESS THE payments). Parents also need to they will be doing and what they HOURS WORKED. WORKER REQUESTS FEWER). be working at least 16 hours to be can expect to take home in pay, entitled to their vouchers for 30 helping them budget for the month Those in low paid, insecure work More often than not, low paid hours of free childcare. ahead and negating the need for will often have little control over the workers will not have the savings last minute purchases. Under our amount of hours they will work at buffer to cover temporary periods BECOMING A LIVING HOURS proposals, workers would also any given time. In addition to the with little or no work. That is why EMPLOYER: receive guaranteed full payment if budgeting challenges this creates, Living Hours requires employers to a shift is cancelled within this four persistent volatility in working hours guarantee at least 16 hours work There is a five step process to week period, thereby preventing also leaves employees vulnerable per week to all of their employees, Living Hours accreditation: sudden gaps in income from week- to arbitrary unfairness, such as unless employees themselves opt to-week and month-to-month. cutting hours to prevent to work fewer. Providing workers Gather information on relevant Secondly, as most large outgoings staff from raising concerns or as an with 16 hours of guaranteed work third-party contracts to such as rent and household bills alternative to good performance per week provides a degree of 1 understand those that will are paid monthly – and are usually management. That is why we are stability for workers, while also be within scope of Living Hours cheaper when paid month-to- asking employers to give workers allowing for employers to be accreditation. month rather than pay-as-you-go, the right for their contracts to be reactive in their staffing decisions paying these key costs in monthly reviewed and adjusted if they are as and when demand fluctuates. Complete a Diagnostic Tool instalments can help to keep more regularly working more than the The 16 hours guarantee also aligns which gives us a snapshot of costly short-term purchases to a hours they are contracted to do. with requirements under Universal 2 your organisation’s practice minimum. We propose this review should take Credit (UC) – which many low and where you might already be place after 12 weeks of employment, paid workers will also be using. UC acting in accordance with Living Hours. and after this, once a year. mandates that claimants need to be working, or looking for work,

The insecurity complex: low paid workers and the growth of insecure work p. 36 9. Annex

2. METHODOLOGY

Workshop on the journey to Unless stated otherwise, the income questions were not asked those that typically work longer Living Hours to identify the quantitative research in this report of unpaid family workers and those than their contracted office hours 3 barriers to implementing the is from quarterly Labour Force on government training schemes. – will have a derived hourly pay measures and concrete next steps Surveys (LFS’) and annual Family As a result, any workers in these that is lower than their official rate. for overcoming them. The workshop Resource Surveys (FRS’) dating groups have been excluded from The ASHE survey, on the contrary, will be facilitated by the Living back to the first quarter of 2016. our figures. samples from businesses own PAYE Wage Foundation with relevant All of the data that pertains to the systems, and so avoids derivation members of your organisation. current state of work insecure in Data from the LFS on the Living issues. We have scaled the LFS the UK (ie, not timeseries analysis) Wage has also been scaled to figures to the ASHE by using Follow up on next steps and is from the four quarterly LFS’ of correspond with data in the Annual standard re-weighting techniques, actions to implement the 2020 and the 2019-20 FRS. This was Survey of Hours and Earnings essentially pegging LFS data from 4 required changes identified in used to avoid seasonality bias in (ASHE). Unlike ASHE, the LFS asks Q2 of each year (when the ASHE the workshop. the data, while also allowing us to respondents to self-report income data is collected), with the ASHE account for the impact of Covid-19 based on how they are paid – ie, data from that year. Celebrate your status as a on insecure workers. The LFS does by hour, week or month. A minority Living Hours Employer! not collect income questions for of respondents report their pay We define insecure work as people 5 self-employed workers, which is hourly, and for those that do not, in work who meet at least one of We are in the early stages of why we adopted a hybrid model the hourly pay variable in the the following criteria (1) people understanding how organisations using both the LFS and FRS. To LFS is derived from the amount of in non-permanent work (casual, can operationalise Living Hours and avoid duplicating our sample, pay respondents receive divided seasonal jobs, fixed-term and welcome the input of employers the LFS was used to evaluate by the number of hours typically agency) excluding anyone who said who want to go further to provide employees exclusively, and the worked per week.24 Consequently, they did not want a permanent job; their workers with security of hours. FRS was used to analyse self- those that work more than their (2) people who self-report volatile employed workers exclusively. Due contracted hours, - such as for pay and hours including those on to the nature of the LFS’ sampling, unpaid training, work events or zero hours contracts; (3) people

The insecurity complex: low paid workers and the growth of insecure work p. 37 9. Annex

who self-report constant pay but Data from the poll provided crucial volatile hours; (4) low paid self- insights into the nature and scale employed people. Those that met of insecure work in the UK, and more than one of these standards is used throughout this report. were not double counted. Results on short shift notice periods in this survey are typically lower Despite being a key aspect of work than when we ran a similar poll insecurity, information on shift in April 2021, which may suggest notice periods, cancellations and that seasonality may impact the to an extent, working contracts findings. Similarly, this could also are not typically captured in the be related to the gradual lifting national worker surveys. As a result, of lockdown measures that have LWF has sought to fill a knowledge occurred since then. The extent gap on the issue by commissioning to which they can be considered polling agency Survation to survey representative of a full year is more than 2000 employees25 on limited by both of these factors. the amount of notice they receive We plan to continue to run surveys of their working hours, shifts or on this issue consistently and at work schedules, whether they have different points in the year to experienced shift cancellations, how produce results which can be many hours they are guaranteed applied to a full calendar year. to work and how shift uncertainty impacts them.

The insecurity complex: low paid workers and the growth of insecure work p. 38 REFERENCES

1. Survation interviewed 2021 workers in June 2021, the straight: How record employment has changed the for this report can be found in Annex 2. Available at: https://fairbydesign.com/ sample did not include any self-employed workers. UK. London: Resolution Foundation. whats-the-poverty-premium/#:~:text=The per 16 See reference 1. cent20poverty per cent20premium per cent20is per 2 See reference 1. 10 More information about the Living Hours cent20the,costs per cent20more per cent20in per accreditation scheme can be accessed here: 17 TUC (2020) Disability pay and employment gaps. cent20deprived per cent20areas. 3 See reference 1. https://www.livingwage.org.uk/living-hours. Further London: TUC. information on the Living Hours measures and 22 More information on the LFS income measures 4 ONS (2021) Unemployment rate (aged 16 and how they support insecure workers can be found in 18 See reference 1. can be accessed here: https://www.ons.gov.uk/ over, seasonally adjusted). Available at: https:// Annex 1 of this report. employmentandlabourmarket/peopleinwork/ www.ons.gov.uk/employmentandlabourmarket/ 19 Living Wage Foundation (2020) Employee jobs employmentandemployeetypes/methodologies/ peoplenotinwork/unemployment/timeseries/mgsx/ 11 See reference 1. paid below the Living Wage: London: Living Wage labourforcesurveyuserguidance. lms. Foundation. 12 Klug et al (2019) ‘Trajectories of insecurity: ‘Young 23 See reference 1. 5 Edminston, D. (2020) The depth and profile of adults’ employment entry, health and well-being’. 20 Business insider (2017) The Brexit slowdown is UK poverty has changed considerably – official Journal of Vocational behaviour. officially here — UK GDP grows less than expected statistics must start capturing this reality amidst in Q1; & ONS (2017) Second estimate of GDP: Jan to COVID-19. London: LSE and JRF (2021) UK poverty 13 Taylor, M (2017) Decline in job security over the last Mar 2017. statistics. London: JRF. decade for older workers. Centre for Ageing Better. 21 JRF (2020) What the first COVID-19 lockdown meant 6 Francis-Devine, B (2021) Poverty in the UK: statistics. 14 TUC (2017) Insecure work and Ethnicity. London: for people in insecure, poor-quality work. London: ‘House of Commons Briefing Paper, number 7096.’ TUC. JRF. London: House of Commons Library 15 Sampling constraints in the polling meant that 22 Cominetti, N. Bell, T. & Slaughter, H. (2020) A new 7 JRF (2020) UK Poverty 2019-2020. London: JRF. we were only able to analyse ethnic disparities in settlement for the low paid: beyond the minimum the data by dividing into white and BAME workers. wage to dignity and respect. London: Resolution 8 Coulter, S.(2016) The UK labour market and the We recognise the limitations of splitting different Foundation & Wilson, T & Buzzeo, J. (2021) The ‘great ’ & TUC (2015) Productivity: no racialised groups with their own experiences of impacts of the Covid-19 crisis on low paid and puzzle about it. labour market insecurity into one broad BAME insecure workers. London: Institute for Employment classification, though we still felt highlighting the Studies. differences in shift notice periods among BAME and white workers was worth recognising. More 9 Clarke, S & Cominetti (2019) Setting the record information on the poll, and the methodology used 23 Fair by design (2021) The Poverty Premium.

The insecurity complex: low paid workers and the growth of insecure work p. 39 LIVINGWAGE.ORG.UK @LIVINGWAGEUK