Economy & Work

New report reveals regional disparities in living wage adoption, with the South West lagging behind national targets

New report reveals regional disparities in living wage adoption, with the South West lagging behind national targets.

By Jordan Pike, The Commons View | 21 July 2025, 08:51

A recent report by the Living Wage Foundation has revealed significant disparities in wage adoption across the United Kingdom, with the South West emerging as one of the least compliant regions. Despite national campaigns and growing public support, fewer than 30% of large employers in Devon and Cornwall have adopted the voluntary living wage standard.

The foundation’s recommended rate currently stands at £10.90 per hour outside London, a figure calculated to meet basic living costs. Yet many workers, especially in hospitality, care, and retail, continue to earn close to the statutory minimum wage of £9.50, leaving thousands under financial strain amid rising utility and food prices.

Tamsin Rowe, a care assistant from Exeter, earns £9.70 an hour after nearly six years in her role. “We’re not asking for luxury, just enough to manage bills and a bit of breathing room,” she says. “After rent, there’s barely anything left.”

Local councils have pledged to lead by example, with Plymouth City Council announcing plans to become a Living Wage Employer by the end of this year. Campaigners argue that public sector leadership could pressure private firms to follow suit, particularly in areas where council contracts are a major source of employment.

Employers cite inflation and staffing shortages as reasons for caution. Small businesses, in particular, say they are struggling to balance higher wage expectations with post-pandemic recovery efforts. Some have called for government incentives to offset the initial cost of raising pay.

However, studies show that adopting the living wage can improve staff retention, morale, and productivity. “It’s not just the right thing to do — it’s smart business,” says Jack Morton, who runs a chain of independent cafés in Cornwall and introduced the policy last year.

The Living Wage Foundation is urging Westminster to take bolder steps in supporting regional uptake, including greater public recognition for compliant employers and conditional funding for those who refuse. Without intervention, campaigners warn that economic inequality will continue to deepen between regions and sectors.