ONE in four workers in the North West earns less than a living wage, according to new report.

The annual living wage research report by KPMG, published yesterday, estimates that more than 600,000 workers receive less than the living wage in the region.

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This is an increase from the same time last year when the figure was one in five, or 21 per cent.

The new Living Wage rate was increased yesterday from £7.65 by 20p to £7.85 – making the voluntary pay level – set by the Living Wage Foundation – 21% higher than the compulsory National Minimum Wage, which is £6.50 an hour.

The Living Wage rate in London will rise from £8.80 an hour to £9.15, the mayor Boris Johnson announced.

Lynn Collins, TUC Regional Secretary for the North West, said: “The consequence is we have to spend on tax credits to subsidise low paying employers and we bring in less in tax.

“The fact is there are employers out there across the North West who can afford to pay living wages, but aren’t.”