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PRIVACY
Economic Development

Report reveals low pay blighting north Wales area

A report by the Bevan Foundation shows low pay and insecure work is exacerbating the cost-of-living crisis for those in Arfon

Average annual earnings for full-time workers living in Arfon are below both the Welsh and º£½ÇÊÓÆµ averages(Image: Daily Post Wales)

The average worker living in the north Wales constituency of Arfon is more than £3,000 a year poorer than the average º£½ÇÊÓÆµ worker, new research shows. A new economic report into the area by Welsh think-tank the Bevan Foundation, commissioned by Hywel Williams, Plaid Cymru MP for Arfon, shows that low pay and insecure work is exacerbating the cost-of-living crisis for people living in the constituency.

Although overall employment rates in Arfon are comparable to the rest of Wales and the º£½ÇÊÓÆµ, the average annual earnings for full-time workers living in Arfon are below both the Welsh and º£½ÇÊÓÆµ averages. More specifically, the report found that the average worker who lives in Arfon is £1,045 a year poorer than the median Welsh worker, and £3,057 a year poorer than the median º£½ÇÊÓÆµ worker.

However, pay for jobs based in Arfon is significantly higher than the pay earned by workers living there. This is because many people who live in the constituency are employed in low-paid roles, while those in higher-paid jobs in the area commute in and out of Arfon.

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The report said this is partly driven by the nature of the local economy. Of the 31,000 workers in Arfon, more than 60% were concentrated in four industries – human health and social work, education, wholesale and retail trade, and public administration and defence.

The area is twice as dependent on the public sector than the º£½ÇÊÓÆµ average. The three main employers are local council Cyngor Gwynedd, Bangor University and Ysbyty Gwynedd hospital.

The report also highlighted the “cost-of-living premium” being faced by those living in Arfon which is having an impact on the poverty there alongside low pay and insecure work. In particular, it reported that the average person could expect house prices to be around 5.7 times their annual earnings in Arfon. Social rent accounts for 33% of the incomes of the poorest quarter of the population (compared to 28% across Wales).

They also face higher energy costs due to having some of the most energy-inefficient homes in the º£½ÇÊÓÆµ, and high transport costs as a result of expensive and difficult to access public transport. The Welsh Government said it was “doing everything we can to support people through this cost-of-living crisis by providing targeted help to those who need it most”, adding that, during 2022-23 and 2023-24, support was worth more than £3.3bn.