More than 5m people earn less than a living wage, according to the latest statistics from the TUC.

The study showed that 5.3m people – more than a fifth of all workers in Britain – fall below a low pay threshold put at £6.75 an hour, almost £1 more than the national minimum wage of £5.80.

The TUC warned that some bosses were using economic problems as a “smokescreen” to freeze the pay of workers.

TUC deputy general secretary Frances O’Grady said: “Government ministers, public authorities, businesses and the City have seen the moral and practical benefits of paying a living wage. This is not a luxury in a time of economic downturn, but the key to building a fair, equitable and sustainable recovery.”