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PRESS RELEASE 19 February 2002 The More Things Change......While high earners enjoyed another substantial rise in their average weekly earnings – a 7.3 per cent rise between 2000 and 2001, the average weekly earnings of the lowest decile only rose by 4.5 per cent over the same period. According to the recently released New Earnings Survey, the highest decile now earn an average of £722 a week, compared to £207 for the lowest decile. Although the NMW was increased to £4.10 on 1 October 2001, this new level only redresses the differential that was created in 2000, which reflected that year’s increase in average earnings and the fact that the NMW level had remained static since its introduction in 1999. One positive development is that full-time women’s average gross weekly earnings in 2001 rose at a higher percentage than men (6.7 per cent for women; 5.69 per cent for men). Nevertheless, women’s average annual earnings only reached 71 per cent of men’s. Although this disparity is often explained by the greater number of hours that men tend to work in a year, it is interesting to note that women’s average annual earnings are less then men’s in every age category. The closest the two come together is for those workers aged between 18 & 21. Currently, a worker receiving the adult National Minimum Wage working the average number of hours a week earns £154.16 gross per week (£8,031 per year). The Low Pay Unit argues for a National Minimum Wage set at half-male median earnings - currently £5.38 per hour. At this level, a worker would receive £203.90 per week, £10,623 per year. In 2001, 17.5 per cent of all full-time British workers earned under £12,500. This figure includes 79 per cent of full-time female manual workers. This means that almost a fifth of full-time workers are earning below the Low Pay Unit’s low pay threshold, which is set at two-thirds male median earnings (£277.24 per week; £14,444 per year; £7.32 per hour). Dr Richard Towers, the Director of the Low Pay Unit, said: At best, the National Minimum Wage is set at levels that are barely restraining the differentials between high and low pay from widening beyond the vaguest notion of decency. It is certainly not helping the redress the damaging inequalities in pay. At the same time, we are sad to see so many low-paying employers treating the NMW as the going rate, rather than as the absolute minimum. We will continue to press for a single level to be paid to all workers, regardless of age, that ensures that work really does pay. For further information contact: Notes to Editor:
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