More Than A Quarter Of Workers Cannot Afford £300 Emergency

More than a quarter (27%) of employees report their pay is not enough to cope with a £300 emergency (without having to use savings) according to new research from the Chartered Institute of Personnel and Development (CIPD).

The survey (which YouGov polled more than 2,500 employees for) underlines the fragile state of many employees’ finances, even before the cost-of-living crisis fully comes to bear, finding that:
  • One in four (28%) have money problems which affect their job performance, rising to 34% of those earning less than £20,000;
  • One in eight (12%) say their pay is not enough to support an acceptable standard of living without having to go into debt to pay for food/bills;
  • One in ten (10%) do not think their job protects them from falling into poverty, and only 47% said their pay is enough to help save for retirement.
The CIPD says employers need to start offering greater financial wellbeing support to their workers.  Not only because they need to do their bit as a responsible employer in the midst of the cost-of-living crisis, but also to help them stand out as an employer of choice in today’s tight labour market.
Charles Cotton, senior reward and performance adviser at the CIPD, the professional body for HR and people development, said:
“Even before the current cost-of-living crisis unfolded, work was failing to protect many people from poverty and failing to support good financial wellbeing in the way it should. While the Government is best placed to provide immediate support for people affected by the cost-of-living crisis, our research shows there are opportunities for employers to do much more to support the longer-term financial wellbeing of their people.
“The biggest difference an employer can make is to pay a fair and liveable wage. But even organisations who can’t afford to increase wages right now can support their workforce in other ways.”

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