PANDEMIC support funds for businesses should be contingent on firms offering better employee benefits in order to combat low pay and precarious work, a think tank has said.

Analysis by IPPR Scotland, published today, shows that many jobs are not providing workers with “enough to make a decent life for themselves and their families.”

The think tank said that women and minorities are particularly badly served by the labour market.

The group is calling on the Scottish government to implement wide reforms to ensure that everyone has a “living income” — enough money to lead a good life.

Recovery from the coronavirus pandemic should be linked to these efforts, according to the researchers.

“The sectors hardest hit by Covid-19 are also some of Scotland’s lower-paid sectors, and it is likely that they will need ongoing support and reform to rebuild following the pandemic,” the think tank said.

IPPR found that women are 44 per cent more likely to experience low pay than men, while black and ethnic minority workers are 38 per cent more likely to experience this than white workers.

Just one in three young people have a union or employee association at work, it found.

One in five workers surveyed said they typically receive two weeks’ notice or less.

IPPR said that levies should be used against businesses that fail to meet fair-work criteria, with tax rebates for those who do.

Senior research fellow Rachel Statham said: “As a first step, the Scottish government should come together with employers and unions to drive up pay, hours and conditions in those sectors hardest hit through the crisis, like hospitality, retail and social care.”