A growing number of UK employees are turning to salary advances to cover bills and basic expenses, with one in five workers having asked their employer to be paid early in the last year, new data shows.
The figures, based on a survey by payroll software company PayFit, reveal that even those who received a pay rise in 2025 are still struggling to manage between pay days. The research suggests a rising appetite for more flexible pay models among British workers, particularly among those facing short-term financial strain.
More than 40 percent of UK workers said they found it difficult to stretch their income to the end of the month, with the number rising to 65 percent among those who had requested a salary advance. Despite two-thirds receiving a pay rise this year, many cited high living costs, delayed payment cycles and increased reliance on credit as key reasons for cashflow difficulties.
PayFit, which provides cloud-based payroll and HR software to over 10,000 small and medium-sized businesses in Europe, commissioned polling firm Ipsos to survey nearly 2,000 workers across the UK, France and Spain. The UK sample included 650 employees aged between 18 and 65.
Flexible pay demand grows as staff struggle to manage month-end
Among the UK workers who requested a salary advance, more than half (54 percent) used the funds to pay a bill, while a third relied on it for everyday costs such as food and transport. Other reasons included covering mortgage or rent (21 percent), childcare (22 percent) or avoiding credit card debt (28 percent). More than a quarter used the advance to support personal savings goals.
Nearly half (47 percent) of UK respondents said they would prefer to receive their pay in staggered payments throughout the month — higher than in France (39 percent) or Spain (45 percent). In addition, 61 percent of British workers said they would like to choose the date they receive their salary.
PayFit CEO Firmin Zocchetto said the findings should prompt employers to think more broadly about financial wellbeing. He said the issue was not about replacing monthly pay altogether, but about offering greater flexibility.
“Rising costs and stretched budgets mean many people have no choice but to live day by day, which tells us something needs to change,” he said. “It’s not to say that employers must offer advances. Rather, it’s about giving employees more choice, more control and more support. Employers have a real opportunity to personalise pay and help build financial literacy, so staff can manage their money with confidence, not just to get through the month but to plan for the future.”
Although most respondents said they were broadly satisfied with current pay methods, more than one in five (21 percent) said they would prefer to be paid bi-weekly, while 16 percent wanted weekly payments. Another 10 percent wanted the ability to choose their own pay frequency. These preferences were significantly stronger in the UK than in France or Spain.
Short-term borrowing still common among UK workers
The survey also found that many workers are relying on short-term borrowing to get by. Over half (52 percent) said they had used a credit card to cover expenses before payday. Three in 10 had borrowed from friends or family, 28 percent had used “buy now, pay later” schemes and 27 percent had gone into their overdraft.
Separate data from the Office for National Statistics shows that while inflation in the UK has slowed in recent months, essential household costs remain high. In October 2025, food prices were up 6.4 percent year-on-year and housing-related costs, including rent and mortgages, continued to outpace wage growth for many.
Financial wellbeing experts have warned that while advances and flexible pay options can help in emergencies, they are not a substitute for long-term income stability. A report in June by HR body the Chartered Institute of Personnel and Development found that fewer than half of UK employers offer financial wellbeing initiatives, and many line managers still lack training on how to support staff facing money-related stress.
Earlier this year, a study by financial wellbeing platform Wagestream found that access to earned wage schemes — where staff can draw down pay they’ve already accrued — was linked to reduced reliance on credit and improved sleep. But the same study warned that without clear communication and limits, such tools could create dependency rather than financial resilience.
PayFit’s Zocchetto said the goal should be to make pay structures work better for people navigating modern economic realities. The option to personalise income flows, he said, could support both retention and resilience.
