Employees who earn less than £30,000 are bearing the brunt of the cost-of-living crisis, with their employers far less likely to offer meaningful financial wellbeing support, according to new research from Mintago.
The financial wellbeing platform surveyed a national representative sample of 1,333 UK adults in full- or part-time work. It found that two-fifths are either ‘very stressed’ (9%) or ‘somewhat stressed’ (30%) at present – of those, 62 percent said the rising cost of living is a contributor, making it the UK’s most prevalent cause of stress. Among those earning less than £30,000, this figure rises to 69 percent.
Despite this, just 36 percent of workers say their employers have initiatives in place that are designed to improve the financial wellbeing of staff. For employees earning less than £30,000, this figure drops to 26 percent.
The support provided to those earning less than £30,000 also appears to be less impactful, with fewer than one in five (18%) stating that support provided by their employer has improved their financial situation, compared to a UK average of 29 percent.
The survey also found that just 20 percent of employees earning under £30,000 think that their employers care about their financial wellbeing. Almost half (44%) of employees would leave their current jobs for an employer that provides better financial wellbeing support.
Chieu Cao, CEO of Mintago, comments on financial wellbeing support:
“With inflation remaining at a high level, employees are continuing to struggle with the ongoing cost-of-living crisis and require support from their employers now more than ever. This is even more necessary for those on average or lower incomes, with our research showing that those earning under £30,000 are suffering most from the impact of the economic climate.
“Regardless of industry or income level, it is vital that employers step up and deliver robust, complete, and impactful financial wellbeing support. It must fit the unique needs of each individual member of staff – businesses cannot take a tick-box approach.”
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at the University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.