Almost six million people earn below living wage, study suggests

The number of workers who have earned less than the living wage, which is currently £9.15 in London and £7.85 in the rest of the UK, has consistently risen in the past three years, the researchers said.

According to the figures, young, female, part-time workers are the most likely to be paid less than the living wage.

"With the cost of living still high, the squeeze on household finances remains acute, meaning the reality for many is that they are forced to live hand-to-mouth," KPMG's head of living wage Mike Kelly said.

"The figures show there is still more to be done if we are to eradicate in-work poverty. For some time it was easy for businesses to hide behind the argument that increased wages hit their bottom line, but there is ample evidence to suggest the opposite, in the shape of higher retention and higher productivity.

"It may not be possible for every business, but it is certainly not impossible to explore the feasibility of paying the living wage."

The living wage, which is not compulsory, is significantly higher than the legal minimum wage, which is £5.13 for people aged between 18 and 20, and £6.50 for people aged 21 and above.

However, a national living wage, set by the government at an initial £7.20, is due to come into force at the beginning of the next financial year and will be applicable to workers aged 25 and above.