The cost of living crisis in the UK severely affects workers’ financial stability.
- Survey reveals 23% of UK adults run out of money before payday.
- Employees under 45 are particularly impacted, with many struggling to pay bills.
- Younger workers are often forced to work through illness due to financial pressures.
- Government proposals aim to reform sick pay, potentially offering relief.
The cost of living crisis continues to impact a substantial portion of the UK workforce, with wages failing to cover daily expenses. Recent survey data reveals that 23% of UK adults have depleted their financial resources ahead of their pay cycle. This issue affects not only employees but also unemployed individuals and students, highlighting widespread financial vulnerability.
For younger employees, particularly those under 45 years old, the financial stress is acute. A significant number report difficulties in meeting basic expenses, such as bills and food. This demographic, often in the early stages of their careers, is notably affected due to typically lower salaries. Furthermore, those under the age of 34 show a marked tendency to secure additional loans and seek support by living with family or friends, with 25% taking such measures.
Fear of wage loss prompts many young workers to continue working during illness, exacerbating their financial and physical stress. The survey highlights that 29% of employees reported working while unwell, a figure which surges to over half among 18-24-year-olds. The lack of access to adequate sick pay compels employees, particularly younger ones, to prioritise financial needs over health.
Changes are on the horizon as the government introduces new workers’ rights legislation, including alterations to the statutory sick pay system. This reform proposes to eliminate the current four-day waiting period for sick pay and remove the earnings threshold, offering immediate relief from the first day of illness. However, this legislative process may take over a year before its benefits are realised.
With these financial strains, individuals have increasingly sought ways to mitigate their economic burdens. Common strategies include reducing household spending and insurance coverage, as well as exploring higher paying job opportunities or additional work hours. Among older workers, there is also a trend towards delaying retirement to maintain financial stability.
The survey underscores the pressing need for comprehensive measures to alleviate financial burdens on UK workers.
