One in six workers in the UK struggle to pay bills as the second position sets a record
One in six UK workers are now working to pay their bills at the end of each month, according to a major new study, even as inflation cools down and real wages begin to rise.
New data from Lancaster University’s Work Foundation shows that 17% of workers surveyed said they often struggle to cover basic spending. Another 40% reported little or no disposable income to save on holidays or emergencies.
These findings are the highest percentage since September 2024, as separate figures from the Office of Statistics show that more than a quarter of UK adults (26%) cannot afford the unexpected but necessary expenditure of £850.
Work Foundation director Ben Harrison warned that the deep-rooted salary stagnation in the UK is still shaping millions of daily life. “Improving living standards is not just numbers on spreadsheets – it’s about the financial safety of workers,” he said. “Starting with the worst costs of a generation’s life crisis, our analysis shows that workers continue to feel the impact of the stagnant payroll packages for nearly 20 years.”
The pressure from household finance has fueled a sharp increase in the number of workers who are working for the second job. Official data shows that 1.23 million people are now playing multiple roles, the highest number on record, up 10% from the year.
“Sometimes the second job is fascinating as a side hustle or optional extra feature, but economic necessity is often a key motivation,” Harrison said. “Although the ongoing salary increases for some time, many workers’ main jobs still do not earn enough income to cover the basic costs.”
Young workers are particularly vulnerable. Among all the 16- to 24-year-olds surveyed, they are worried about losing their jobs in the next 12 months in a larger slowdown in the UK labour market. Unemployment has risen to 4.6% (four-year high), with vacancies and wage growth slowing under the weight of rising payroll taxes and still high interest rates.
Although recent wage growth has surpassed the first inflation in years, expectations for real wages remain low. Only 25% of older workers aged 55 to 64 believe they will receive higher inflation this year.
As consumer demand remains vulnerable and actual income under pressure, these findings may exacerbate calls for the Bank of England to accelerate lower interest rates to reduce borrowing costs and increase confidence.
Now, the bank said it hopes clearer evidence that prices in the market will drop by a quarter point as early as August before further relocation.
Economists say the numbers highlight the disconnection between title indicators such as GDP and inflation, and the real-life experiences of millions of workers. As Harrison puts it, “We need to shift our focus from short-term restoration to long-term solutions that really improve the financial security and quality of life for workers.”
