Gig Economy Challenge

Create a digital service for gig economy workers that analyses data to provide insights that help them understand their take-home pay and if they are paid the London Living Wage

What is the challenge?

Create a digital service for gig economy workers that analyses expenditure and remuneration data to provide insights that help them understand their take-home pay and if they are paid the London Living Wage.

 

Where?

Greater London

What will the Resilience Partner provide?

London’s growing gig economy workforce

What impact are we seeking?

 

  • Gig economy workers better understand how expenditure relates to their pay and impacts on their ability to meet the cost of living.
  • Data captured by the solution helps the Living Wage Foundation and other stakeholders to set expectations for gig economy employers to meet the cost of living for their workforce and ability to offer an accreditation solution in a challenging sector.
  • Longer term we hope this results in systemic change that includes more accredited gig economy employer pay rises for tens of thousands of workers

What will the Resilience Partner provide?

 

  • The Living Wage Foundation will provide staff time and specialist knowledge about the sector and low pay based on our conversations with gig economy employers so far.
  • We will also provide access to workers and employers who can feed into the development of a digital tool, test and pilot it.

What does good look like?

The key requirement is a digital platform that enables workers to analyse their income and expenses from the gig economy platforms they use, and translate this into useful, actionable insights that help the gig worker understand their financial position, whether they are paid the London Living Wage of £10.85 per hour, and plan and have more agency over their work. Ideally, it would be able to analyse the data to report collectively, to work out trends for specific employers or types of employers.

Background information

  • There are currently almost 4.7 million gig economy workers in the UK with 24% working in London.
  • In 2018 a NatCen Social Research study found that 700,000 gig economy workers were paid below the minimum wage and the Resolution Foundation found that 49% of self-employed workers were low-paid.
  • Many gig economy employers have approached the Living Wage Foundation (LWF) with an interest in becoming an accredited employer.
  • The LWF’s accreditation scheme is currently unable to take into account the variable costs incurred by gig economy workers, and therefore set an accurate expectation of pay levels that would meet the worker’s cost of living.

 

About the Resilience Partner

The Living Wage Foundation are at the heart of the independent movement of over 7,000 businesses who believe that a hard day’s work deserves a fair day’s pay. We celebrate the leadership of responsible employers who choose to pay a real Living Wage based on the cost of living.

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