UK low pay share rises slightly, ending 15-year decline

The proportion of workers in the United Kingdom receiving low pay has failed to fall for the first time in 15 years. According to data from the ONS Annual Survey of Hours and Earnings (ASHE), the share of employees earning less than two-thirds of the median hourly pay rose to 2.8 per cent in April 2026, up from 2.6 per cent the previous year.

The Resolution Foundation noted that the stagnation in the decline of low pay is partly due to recent government actions to increase the minimum wage in alignment with median earnings. While the current rate remains significantly lower than a decade ago, when one-in-five employees were low paid, the recent uptick marks a shift in the long-term trend.

The ASHE data will inform the Low Pay Commission’s (LPC) upcoming minimum wage setting process. While previous estimates suggested a 2027 minimum wage of £13.18 would maintain the two-thirds median threshold, new data showing median hourly pay grew by 5.9 per cent suggests a higher rate, potentially closer to £13.40, may be required.

Additionally, the data indicates continued progress in narrowing the gender pay gap. Among full-time employees, the gap decreased from 13.0 per cent to 12.3 per cent.