New call for investment in Peterborough as report highlights city of low wages and insecure work

The demand comes after a new report from national research group Centre for Cities revealed that while Peterborough is the fourth fastest growing city it is also blighted by relatively low wages and a large proportion of people who are claiming Universal Credit.

And politicians and business leaders have rallied round to demand more investment in Peterborough to creating the conditions that will pave the for better paid jobs and higher skills.

According to Centre for Cities, Peterborough is the fourth fastest growing city out of the 63 largest towns and cities with a population growth of 14 per cent from 2013 to 2023 taking the number of residents up from 192,488 to 219,509.

It ranks in seventh place for business starts and closures per 10,000 of the population yet while it saw 52.8 businesses created in 2023 in that same year there 63.3 business closures - a churn rate of -3.0.

Yet, at the same time, Peterborough is among the lowest 10 cities – at number 56 – for the proportion of its working population – 5.9 per cent – claiming Universal Credit.

The benefit can be claimed by the unemployed but also by those in work whose wages are so low they are entitled to claim Universal Credit to top up their income.

The city is also low down for the average weekly wage paid to employees, which is between £567 to £625.

But the report warns: “While workplace wages in urban areas are higher than in non-urban areas across the country, all cities have struggled since the financial crisis.

"Most places have not seen a pay increase (once adjusted for inflation) since 2008.

"Even for those that have, this increase has been small.”

Peterborough MP Andrew Pakes said: “Peterborough has real potential but growth must be matched by serious investment in infrastructure and skills, especially for our existing population.

"With new investment, the expansion of ARU Peterborough and the Station Quarter, we have a real chance to turn a corner.

"But for me, the priority is clear: skills.

"Too many people are stuck in low-paid, insecure work.

"The work of good employers, Peterborough College, and the Government’s new Youth Guarantee is key to changing that.

"But we need a stronger focus on reversing the decline in apprenticeships under the last Government, and on making it easier for young people to learn a skill or trade.

He added: “For too long Peterborough has been treated as the poor cousin to Cambridge.

"Yet whereas Cambridge struggles for growth, we have all the ingredients to get going quickly, bringing jobs, investment and opportunities to the city.”

Paul Bristow, the Cambridgeshire and Peterborough Combined Authority mayor said: “We are a fast-growing city with a young population and real potential.

"But it’s also true that too many people are stuck in low-paid work or locked out of opportunity altogether.

“The answer is to be unapologetically on the side of growth for our city.

"That means being more open for business, backing the companies that want to invest and expand here, and creating the conditions for better-paid jobs and higher skills.

“My ambition is to triple the size of the Peterborough and Cambridgeshire economy, underpinned by investment in the basics: better transport, well-planned housing, energy and skills.

"That approach is set out clearly in our Local Growth Plan, including a Peterborough Opportunity Zone to help unlock growth in the city through the delivery of key strategic projects like the Station Quarter, further development of ARU Peterborough and a new Community Stadium.

“Development in the city has at times felt stuck and the cost to people’s living standards is unacceptable. I’ll break down those barriers to growth.

“A growing, younger population is not a weakness — it’s an opportunity.

"But as well as investment, more people need clear routes into work and progression. That’s why Combined Authority initiatives like the Youth Hub at Peterborough United matter, alongside our wider investment in better skills linked to employers’ needs.

“If we want to raise living standards across the city, we have to get on and invest. I’ll keep pushing to deliver growth that works for everyone.”

Charlotte Horobin, chief executive of Cambridgeshire Chamber of Commerce, said: “It is really positive that Peterborough remains one of the fastest growing cities, but we must recognise the associated infrastructure that must align with that growth.

"That is why we welcome developments such as the Station Quarter and Sports Quarter.

"These projects have a great opportunity to develop local supply chains and employ local people.

She said: "Whilst qualifications are not everything there is a link between Peterborough wages being below the UK average and the relatively low proportion of residents with high level qualifications.

"That is why it is excellent to see investment into ARU and the Inspire Education Group, who we are proud to work closely with to ensure their provision responds to the needs of employers through the Local Skills Improvement Plan.

"We have also welcomed the recent opening of the Youth Hub to support our young people into education, training and critically a job.

"We should also note that labour costs remain predominant price pressure for business in our latest quarterly economic survey and we must remain competitive.

“On Friday, the Growth Summit, led by Cambridgeshire Chamber of Commerce, will explore the well noted challenges that have faced the city, but critically the opportunity that we can all get behind.

"We recognise that we all have a responsibility to champion Peterborough.”