Despite an increase in minimum pay some 5.3 million people are paid less than the Living Wage

5.3m still in poverty despite rise in minimum wage. Credit: PA

With just eight weeks to go before the General Election, George Osborne is putting the final touches to tomorrow's budget speech.

Perhaps as a curtain raiser, the government announced the biggest increase to the minimum wage in seven years. The TUC says it's nowhere near enough.

ITV News social affairs editor Penny Marshall reports:

This initiative is the biggest real time increase to the living wage in seven years and will see more pennies in the pockets of 1.4 million people.

That this initiative comes just 50 days before an election is proof of the way the working poor as an issue is rising up the political agenda.

The rise in short-term, low-paid insecure work means that more than 5.3 million people are currently working but being paid less than the Living Wage, according to research carried out by KPMG.

So it isn’t just about what you earn – but the way you earn it that is affecting the earning power – or lack of it of the so-called working poor.