The majority of UK workers are still struggling with the ongoing effects of the cost-of-living crisis, and their numbers are increasing, according to research from Health Shield Friendly Society.
The Health Shield survey of full and part-time workers across the UK showed that two-thirds (66%) said they were worried about the cost-of-living crisis. A total of four in 10 workers were worried about money. Steps taken to combat ongoing worries included buying cheaper food and skipping meals.
This has increased over the last 12 months, with six in 10 people (61%) saying they are now more worried about it than they were a year ago. Only 11% said they were less worried. Almost half (48%) said it had affected their ability to do their job.
The results, which come ahead of Wednesday’s Spring Budget, show that despite a recent fall in the rate of inflation, the crisis is continuing to cast a long shadow over employees, with the majority still negatively affected.
Health Shield carried out the survey with Survey Monkey in December 2023 among 564 people in full or part-time work, with a cross-section of regions, genders, and ages.
Skipping meals
The survey found that four in 10 workers said they worry about money every day. Money worries were rife across the workforce, with 74% stating they worry about money at least once a week. The main financial concerns were rising utility prices (58%), having to put plans on hold (55%), and increasing food prices (50%).
To combat these ongoing financial pressures, employees were taking the following steps – purchasing cheaper food (82%), using savings or credit cards (70%), and cancelling holidays (61%). Alarmingly, nearly four in 10 (37%) admitted they have skipped meals.
Breakdown by salary
Looking at employee concerns in greater detail, it is those on the lowest salaries who were most worried. Those earning under £25,000 a year and those earning £25,000-£40,000 a year were the most worried (69% and 68% respectively).
This compares to higher earners on £40,000-£60,000 and £60,000+ being less worried (55% and 54% respectively).
But it is those employees earning more than £60,000 a year who were most worried about how the ongoing crisis will impact their ability to do their job (57%).
That compares to employees earning under £25,000 a year (54%), £25,000-£40,000 (48%), and £40,000-£60,000 (44%) saying this was the case.
Food prices and utility bills
Lower-salaried employees were the most worried about rising food prices. More than five in 10 (53%) employees who earn under £25,000 a year said this was the case, closely followed by 50% of those earning £25,000-£40,000 a year. This compares to those who earn £40,000-£60,000 a year, who were the least concerned, with just 36% saying this was the case.
Rising utility bills were also the biggest cause for concern for those on lower incomes. More than six in 10 (61%) of those earning under £25,000 a year are the most worried about this, closely followed by those earning £25,000-£40,000 a year (60%).
That compares to 44% of those who earn £40,000-£60,000, who were the least concerned.
UK employees hard hit
Paul Shires, commercial director at Health Shield Friendly Society, said: “UK employees have been hit hard over the last few years by the twin blows of rising costs and falling disposable income.
“While almost everyone is looking to save money and budget smarter, it is really shocking that so many say they are skipping meals to try and combat the effects of the cost-of-living crisis.
“This level of constant worry about money and finances will cause additional physical and mental stress and is very likely to damage employees’ health and wellbeing.
“Employers should also be mindful that, as our insight shows, employees in the lower-salary brackets will be worrying much more about practical day-to-day factors at the moment such as rising food prices and the cost of utilities.
“For a significant number, these worries will impair their ability to work effectively.
“More than ever, it is up to responsible employers to step in, providing employees with access to a wide range of support to help alleviate the pressure and empower employees to address these issues.
“Creating an environment where employees feel comfortable to reach out for support when they need it is vital.
“The essential assistance offered through health cash [lans can provide the perfect solution, creating a solid base from which to build an effective health and wellbeing strategy.”