Living Wage for creative jobs could boost UK economy by £42 million, reveals new analysis

The UK economy could be boosted by up to £41.6 million if every creative sector job were paid the Living Wage, according to a new analysis by the Living Wage Foundation.

Based on data from the 2024 Office for National Statistics Annual Survey of Hours and Earnings (ASHE) and a model developed by Cardiff Business School, the analysis found that if enacted, would result in a pay rise for 35,000 jobs - a “smart investment” according to Trevor MacFarlane of Culture Commons.

On average, it found that giving 100 people a pay rise to the current Living Wage would contribute £100,000 to the UK economy.

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Justine Simons OBE, the Mayor’s Deputy for Culture and the Creative Industries, explains: “Our creative industries contribute £64 billion to the economy with hundreds of thousands of jobs.”

“We want even more employers across the creative industry playing their part by paying the real Living Wage, or the London Living Wage if they are based in the capital, supporting their workers to cover the real costs of living," Simons continues.

Nearly 400,000 jobs in the UK’s creative industries are currently paid below the real Living Wage. However, researchers warn that gaps in data could make the true figure - and overall impact - even higher.

The Living Wage is independently calculated against the real cost of living and is currently set at £13.45 across the UK and £14.80 in London. The Living Wage Foundation argues that it “champions and celebrates employers choosing to drive up employment standards.” 

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Katherine Chapman, Executive Director of the Living Wage Foundation, said: “The UK government has a chance to lead by ensuring that public investment in the creative and cultural industries supports good jobs and fair pay.”

“As regional mayors consider how they can boost creative industries in their regions, they should look to embed the Living Wage into their Creative Industry Plans," she added.

"Everyone in the creative and cultural sector, from café staff in museums to studio cleaners and front-of-house teams in theatres, should earn enough to meet the cost of living."

Annabel Craddock is a freelance journalist, follow her on Instagram