By Gideon Schulman
New figures from the Living Wage Foundation make for uncomfortable reading. Almost one in eight jobs in the charity sector are paid below the real living wage. That’s 286,000 people — care workers, shop staff, entry-level employees — whose pay doesn’t cover the basic cost of living.
The trend is heading in the wrong direction.
Last year, 10% of charity roles were below the real living wage. This year, it’s 12%. While the sector isn’t the lowest-paid — the private sector still has 20% of roles under the threshold — charities now lag behind the public sector, where only 5% fall short.
The geographical divide is striking too: 18% of charity workers in the northeast of England earn below the real living wage, compared with just 9.5% in the southeast. For an industry that often prides itself on fairness and community, that’s a sobering imbalance.
The Living Wage Foundation argues that low pay in the third sector undermines its mission. Katherine Chapman, its executive director, put it bluntly: “Low pay in the third sector means that many charities may be perpetuating the very problems they were set up to solve.”
It’s a fair point. A sector that campaigns against poverty and exclusion must take care not to entrench those very issues in its own employment practices. No worker should have to skip meals to continue in a role that is meant to help others.
There are bright spots. More than 2,000 charities — including major names like Oxfam, Shelter, Macmillan and WWF — are now accredited Living Wage employers. Over 80 funders are also accredited, building fair pay into their grant making so charities don’t have to shoulder the burden alone.
The real living wage currently stands at £12.60 across the UK and £13.85 in London, compared with the lower statutory national living wage set by government. The difference matters: one is based on cost of living, the other on political decision.
For trustees and leaders, the question is simple: does your organisation’s pay policy reflect your mission? Paying the real living wage isn’t just a moral stance. It’s about credibility, retention, and setting a standard that ensures the people working to solve society’s hardest problems aren’t struggling to make ends meet themselves.
About the author
Gideon Schulman
Chief Strategy Officer
Former International HR Director, who has vast experience with HR policies and compliance. Specialises in making sure we follow all current and pending legislation and plan a strategic oversight of the organisation.
New figures from the Living Wage Foundation make for uncomfortable reading. Almost one in eight jobs in the charity sector are paid below the real living wage. That’s 286,000 people — care workers, shop staff, entry-level employees — whose pay doesn’t cover the basic cost of living.
The trend is heading in the wrong direction.
Last year, 10% of charity roles were below the real living wage. This year, it’s 12%. While the sector isn’t the lowest-paid — the private sector still has 20% of roles under the threshold — charities now lag behind the public sector, where only 5% fall short.
The geographical divide is striking too: 18% of charity workers in the northeast of England earn below the real living wage, compared with just 9.5% in the southeast. For an industry that often prides itself on fairness and community, that’s a sobering imbalance.
The Living Wage Foundation argues that low pay in the third sector undermines its mission. Katherine Chapman, its executive director, put it bluntly: “Low pay in the third sector means that many charities may be perpetuating the very problems they were set up to solve.”
It’s a fair point. A sector that campaigns against poverty and exclusion must take care not to entrench those very issues in its own employment practices. No worker should have to skip meals to continue in a role that is meant to help others.
There are bright spots. More than 2,000 charities — including major names like Oxfam, Shelter, Macmillan and WWF — are now accredited Living Wage employers. Over 80 funders are also accredited, building fair pay into their grant making so charities don’t have to shoulder the burden alone.
The real living wage currently stands at £12.60 across the UK and £13.85 in London, compared with the lower statutory national living wage set by government. The difference matters: one is based on cost of living, the other on political decision.
For trustees and leaders, the question is simple: does your organisation’s pay policy reflect your mission? Paying the real living wage isn’t just a moral stance. It’s about credibility, retention, and setting a standard that ensures the people working to solve society’s hardest problems aren’t struggling to make ends meet themselves.
About the author
Gideon Schulman
Chief Strategy Officer
Former International HR Director, who has vast experience with HR policies and compliance. Specialises in making sure we follow all current and pending legislation and plan a strategic oversight of the organisation.
