A recent poll by HR and payroll software provider Ciphr has revealed a troubling reality for many British workers—over a quarter, or 28%, of the workforce are finding themselves broke before payday. This stark statistic highlights the ongoing impact of the cost-of-living crisis, particularly on younger workers. The survey provides an unsettling snapshot of the financial pressure facing employees as inflation and rising costs continue to squeeze budgets across the UK.
Younger workers hit hardest
The findings reveal that younger workers are disproportionately affected by these financial difficulties. According to the poll, nearly a third (30%) of employees under the age of 45 have struggled to pay bills or even buy food this year. In contrast, just 15% of workers over 45 report the same struggles. Overall, 21% of all UK adults find themselves financially stretched, but it’s the younger demographic—particularly those aged 18 to 34—who are bearing the brunt of the crisis.
The pressure on the younger UK workforce to make ends meet has led many to make significant lifestyle changes. A staggering 25% of 18 to 34-year-olds have had to move in with friends or family to save money, a rate that is more than double the polling average of 10%. These younger workers are also more likely to have taken on loans or additional debt, creating a cycle of financial strain that is difficult to escape.
The toll on well-being
The financial difficulties highlighted in Ciphr’s poll are not just impacting people’s wallets, but their health and well-being as well. Younger workers are significantly more likely to have worked through illness this year to avoid taking unpaid sick leave. This worrying trend suggests that many feel financially compelled to push through illness, fearing the consequences of taking time off work, especially when already struggling to make ends meet.
Students and benefit recipients are similarly affected. A staggering 42% of students say they run out of cash before their next loan arrives, while a third of those receiving benefits find their funds exhausted before the next payment is due. These figures paint a broader picture of a UK workers society where financial security is becoming increasingly elusive for many.
The bigger picture
Ciphr estimates that approximately 12.4 million UK adults are left without enough money to cover essential day-to-day expenses before their next paycheck, pension, or benefit payment arrives. This significant portion of the population is struggling to cope with the rising cost of living, and as Claire Williams, Ciphr’s chief people and operations officer, explains, “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 Workers Union Says…
“The ongoing financial strain highlighted by this poll comes at a time when inflation and the rising cost of essentials like food, energy, and housing continue to outpace wage growth. Despite efforts by the government and employers to offer support, it’s clear that many workers, especially younger ones, are still finding it difficult to keep up with the growing financial pressures.
The findings from Ciphr’s poll provide a sobering insight into the real-world impact of the cost-of-living crisis on UK workers. The struggle to make ends meet is a reality for millions, with younger workers facing some of the harshest financial challenges. As prices continue to rise and financial security becomes harder to achieve, it is essential that both employers and policymakers take steps to ease the burden on those who are most affected.”
