Research from Ciphr finds that the cost-of-living crisis has impacted nearly a quarter of the U.K. workforce, with many people unable to take sick leave due to a lack of funds.
By Maggie Mancini
The cost-of-living crisis continues to affect a significant share of the U.K. workforce, according to new survey data from Ciphr, with many people’s wages—eroded by months of high inflation—just not stretching far enough. The survey of 2,000 U.K. adults finds that around one in four (23%) has run out of money before their pay day at least once this year. This figure includes over a quarter (28%) of employees in full- or part-time work, a third (36%) of people who are unemployed, and two-fifths (42%) of students.
That’s around 12.4 million U.K. adults left without funds for day-to-day essentials until their wages, benefits, or pension is paid. Nearly one-third (30%) of employees under 45 years old say they have also struggled to pay bills or buy food this year. This compares to one in seven (15%) workers over 45, or one in five (21%) of all adults in the U.K.
People at the beginning of their careers and on lower salaries appear to be among the most affected by cost of living challenges this year. Employees under 34 are the most likely to have taken out a loan or additional loans, as well as the most likely to have moved in with friends or family to save money (25% of 18 to 34-year-olds).
Younger workers are also significantly more likely to have worked through illness this year, rather than take unpaid sick leave. Fear of losing wages saw one in four (29%) employees go to work—or work remotely—while sick. This rises to over half (55%) of 18 to 24-year-olds, two-fifths (38%) of 25 to 34-year-olds, one-third (31%) of 35 to 44-year-olds, and one-fifth (18%) of those over 45.
The results suggest that many of the respondents who can’t afford to take sick leave probably don’t have access to company or contractual sick pay but rely on statutory sick pay. That doesn’t currently pay out until the fourth day of illness or injury, assuming people earn enough to qualify. This, however, is soon set to change, as the government has recently unveiled a series of workers’ rights laws that includes access to statutory sick pay from the first day of illness and no minimum earnings threshold.
“As these findings show, navigating the high cost of living continues to be incredibly challenging, with many people still struggling financially and many others feeling compelled to work through illness due to the financial impact of taking time off,” says Claire Williams, chief people and operations officer at Ciphr.
Some of the ways that people have looked to save money this year include reducing household spending (51%), cutting back or cancelling insurance coverage (13%), and reducing pension contributions (9%).
Around a quarter of surveyed employees have sought to boost their income by looking for a higher salaried role (26%), taking on more hours (28%), or taking on a side gig (17%). One in seven (15%) workers over the age of 55 have also reportedly postponed their retirement.
