Zarah ChoudharyOne in four (23%) UK adults have run out of money before their pay day, or equivalent, at least once this year, according to research by Ciphr.
The poll of 2,000 UK adults found that this was true for more than a quarter (28%) of employees in full or part-time work, a third (36%) of unemployed people, and two-fifths (42%) of students.
This is equivalent to around 12.4 million people over the age of 18.
Three in 10 (30%) employees under 45 have also struggled to pay bills or buy food this year.
This compares to 15% workers aged over 45, or one in five (21%) of all UK adults.
Employees under 35 were the most likely to have taken on a loan or additional loans, as well as the most likely to have moved in with friends or family to save money (25%).
Fear of losing wages saw one in four (29%) employees work when they were unwell.
This rose to more than half (55%) of 18 to 24-year-olds, 38% of 25 to 34-year-olds, 31% of 35 to 44-year-olds, 18% of over-45s.
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 better paid job (26%), taking on more hours (28%), or taking on a side gig (17%).
One in four (28%) workers over the age of 65 have also reportedly postponed their retirement.
Claire Williams, chief people and operations 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 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.
“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.”
Williams added: “Employers, however, do have a responsibility, and vested interest, to support employees’ mental wellbeing and financial wellbeing where possible.
“While additional company sick pay schemes may not be financially viable for lots of employers, the use of health-orientated benefits, flexible working practices, and an empathetic approach to absence, can go a long way to alleviate the mental stress that can often accompany the physical stress that illness and time off work can create.”
