A new survey shows that the cost of living crisis is still affecting a significant number of Brits, with nearly a quarter running out of funds at least once this year before getting to their ‘pay day’.
This figure includes employees in full or part time work (28%), unemployed people (36%) and students (42%).
The survey, compiled by HR and payroll software provider Ciphr, calculates that this equates to around 12.4 million UK adults who are left without enough money to pay for day-to-day essentials until their wages, benefits, pensions, or similar, are paid.
As many as 30% of employees aged under 45 admit to having struggled to pay bills or buy food this year, while younger workers are more likely to have worked through illness rather than take unpaid sick leave.
Commenting on the findings, Claire Williams, chief people and operational officer at Ciphr, said, “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.
“The UK’s SSP (Statutory Sick Pay) system has needed reform for some time, with lower earners and part-time earners particularly disadvantaged if they don’t work for an organisation that offers occupational sick leave.
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“Over the years, this has inadvertently created a situation where many employees have been forced to work when they may not have been well enough to do so because they weren’t eligible for SSP, or they couldn’t afford to live on SSP or wait the qualifying time to get SSP.
“The changes to sick pay outlined in the new Employment Rights Bill – eliminating the lower earnings limit and the waiting time for payment from the fourth day of illness to the first – are (or will be, once this Bill becomes law) a very welcome change. It’s worth noting, that the legislative process could take over a year or more so it may be a while before any employees start to benefit from this.
“It will also be great to see if there’s any planned increase to the rate of SSP and an extension to the length of time people can claim it. Reforms also need to ensure that it’s flexible enough to accommodate phased returns to work and supports long-term illness or disability.”
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