A recent survey highlights the persistent impact of the cost of living crisis on UK workers.
- The data reveals that 23% of UK adults experience financial hardship before payday.
- Young workers, particularly those under 34, face significant economic challenges.
- The survey indicates a strong connection between financial strain and choices such as working while ill.
- Upcoming legislative changes may alleviate some financial pressures.
The cost of living crisis remains a significant concern for the UK workforce, as highlighted by a recent survey conducted by HR and payroll provider Ciphr. The study, which involved 2,000 UK adults, underscores that approximately 23% of individuals have exhausted their financial resources before payday at least once this year. This challenge particularly affects over a quarter of both full-time and part-time employees and is even more pronounced among unemployed individuals and students, with respective figures of 36% and 42%. This equates to about 12.4 million UK adults facing financial shortfalls for essential expenses until their subsequent income is received.
Notably, younger workers are disproportionately affected. Among those under 45, nearly one-third have faced difficulties in covering bills or purchasing food in the past year, compared to just 15% of those over 45. The economic strain extends to early-career professionals, who are often on lower salaries. Data shows that 25% of 18-to-34-year-olds have either taken out loans or moved in with family or friends to cut costs, a figure starkly higher than the survey average of 10%.
The pressure to maintain income often results in employees working while unwell. The survey reveals this situation is particularly acute among younger cohorts, with 55% of 18-24-year-olds and 38% of 25-34-year-olds opting to work through illness, driven by the fear of losing wages. This trend is symptomatic of the inadequacies in the current statutory sick pay (SSP) system, which delays payouts until the fourth day of illness. Fortunately, policy reforms are underway to address some of these challenges.
The government has announced plans to revise workers’ rights, including the elimination of the SSP waiting period and the removal of the minimum income threshold, effective from day one of illness. Claire Williams, chief people and operations officer at Ciphr, recognizes these reforms as essential, noting that ‘the UK’s SSP system has needed reform for some time.’ Although the legislative process will take time, these changes promise relief for those unable to afford days off due to illness without sufficient sick pay.
Employers also have a critical role in supporting employees’ financial and mental well-being. While additional company sick pay schemes might not be feasible for all organizations, the integration of health-oriented benefits and flexible working practices can mitigate the pressure on employees. Employers are encouraged to adopt empathetic approaches to employee absence, which can alleviate the compound stress that financial and health challenges impose.
In response to the financial strain, individuals have adopted various strategies, such as reducing household expenses, cutting insurance coverage, and decreasing pension contributions. Approximately a quarter of employees are seeking higher salaried positions, increasing their work hours, or engaging in side gigs to supplement their income. The survey also highlights that 15% of workers over 55 have delayed retirement plans due to economic pressures.
The findings reflect the persistent financial challenges UK workers face amid a cost of living crisis, pointing to both systemic issues and the need for supportive measures.
