King's College London

New research has revealed the impact of low pay on residents in Southwark, finding that earning below the London Living Wage – £14.80 per hour – affects far more than just household finances.

The study, Living the London Living Wage, was carried out by researchers at the Policy Institute at King's College London, in collaboration with Southwark Council and the Living Wage Foundation. It was funded by the ESRC's Impact Acceleration Fund.

Despite Southwark having over 450 accredited Living Wage employers, around 19,000 people working in the borough still earn below the London Living Wage. 

Researchers followed 15 Southwark residents over a month between pay days in Autumn 2025, using digital diaries, interviews and a creative workshop to capture how pay shapes everyday life. Half of participants earned above the London Living Wage, half below it.

Those on lower wages budgeted with extreme precision, leaving almost no room for unexpected costs. Beyond the financial strain, low pay was linked to heightened stress and anxiety, reduced social connection, and a diminished sense of control over the future. The cost of travel and everyday activities also left many feeling unable to fully participate in community life.

By contrast, earning the London Living Wage offered greater stability – though the research found this did not fully insulate workers, particularly those with children, from ongoing financial pressures.

On a more positive note, participants viewed London Living Wage employers as fair and ethical and saw the accreditation as good for workers and organisations alike.

The report calls for employers, local government and policymakers to go further on fair pay in the borough and beyond.

Councillor John Batteson, Cabinet Member for Climate Emergency, Jobs & Business said:

“This report is both an opportunity to build on what has already been achieved and a call to action. We must increase awareness of the London Living Wage, encourage more employers to pay the wage and become an accredited Living Wage Employer, and strengthen local support. By working together across businesses, institutions and communities, Southwark can continue to lead by example and ensure that everyone who lives and works in the borough has the chance to thrive.”

A participating Southwark resident (earning below the London Living Wage) said, as part of the research:

“[At work], we discuss pay and planning for later life, as many of the staff are quite young (under 40), and the majority of us do not pay into a pension, nor are we saving for retirement. Many of us are relying on the state pension and have resigned ourselves to a reality of working past retirement age if the cost of living continues to be this high.”

King’s College London is an accredited Living Wage employer and received the Living Wage Foundation’s Institution Award in 2025, recognising the university’s leadership and collaborative efforts in promoting the Real Living Wage across London.