Huge pay gap in hourly rates between full time and part time workers

Daniel Wilson shutterstock_95849584-1-2-1People working part time are paid a little over half the hourly rate of those working in full-time employment, and the gap between full time and part time rates is wider in London than any area of the country.

Latest figures for earnings from the Office for National Statistics show that the median hourly rate in London is £9.22 if you work part time but £16.16 for those with a full-time job.

A quarter of the jobs in London are part time and many of them are low skilled. That’s 1.24 million jobs, with some people doing more than one to make up full time hours but being paid a fraction of what they might earn as a full time employee.

In London the gap in hourly rates of pay is 43% but in every other region of the country it is 40% of less. In the South West of England part time workers earn an hourly rate of 68% the full time rate, compared to 57% in London.

The median hourly rate for part time work in the capital is just 14p higher than the next nearest region, the South East of England, but £1.20 higher than the lowest paid region, the North East.

Hourly earnings part time regional

The figures are based on a sample of PAYE records and the ONS calculates a median, or mid point, rather than an average, which might be distorted by a small number of very high rates.

People living in Newham have a lower hourly part time rate than any region of the country and are typically being paid less than those living in Newcastle or Sunderland, where the cost of living is lower.

The rate is only a little higher in neighbouring Tower Hamlets and across the capital median hourly rates for part time workers are below the London Living Wage in 15 of the 33 boroughs – Croydon, Merton, Greenwich, Lambeth, Tower Hamlets, Newham, Barking and Dagenham, Hounslow, Ealing, Brent, Camden, Hackney, Haringey, Enfield and Waltham Forest.

Hourly earnings part time map

The Greater London Authority sets the London Living Wage. It is a voluntary rate and promoted by the Mayor, who is trying to get employers to sign up. At the time of the earnings survey in April the London Living Wage was £9.15. It was increased to £9.40 in October.

As previously reported by Urbs, there are three quarters of a million jobs in London paying less than the Living Wage.  Data shows that women are more likley than men to be in low paid work, and nearly half of those working for less than the London Living Wage are under 24.

Source data

See also

Lowest paid living in Newham as rates remain static across capital

Over 750,000 jobs pay less than the living wage in the capital

Buying a home gets further out of reach, now 11 times annual salary