Financial wellbeing | Workers with second jobs at highest level since records began as money worries mount

The Government’s pledge to raise living standards across the UK faces a substantial challenge as many workers continue to feel financially insecure, researchers have warned.

New analysis from the Work Foundation at Lancaster University, of a representative survey of 3,796 UK workers, finds that one in six (17%) report they struggle to pay their bills each month, and four in ten workers (43%) say they have little income left for savings or holidays.

The UK workforce is currently experiencing the strongest period of sustained wage growth for over 20 years while average nominal wages have increased by more than 5% for 34 consecutive months since July 2022. However, researchers say that workers are still struggling to make ends meet, as years of wage stagnation and the cost of living crisis mean that for many, wages still do not cover basic living costs.

Only half of workers (48%) surveyed believe wage increases are keeping up with the cost of living and just 43% expect an above inflation pay rise in the next 12 months (26% did not expect an above inflation pay rise and 30% neither agreed/disagreed or were N/A). Low paid workers are feeling the brunt of financial pressures, with only 42% of those earning less than £25,000 stating their pay is keeping up with the cost of living, compared to 73% of higher paid workers (earning £60,000 or more).