One in four have run out of money before payday 

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Joanne Swann
A person in a blue hoodie sits on a couch with their face in their hands, surrounded by open cardboard boxes, anxiously awaiting the relief that payday promises.

The cost of living crisis continues to affect a significant share of the UK workforce, according to new survey data, with many people’s payday just not stretching far enough.

The poll of 2,000 UK adults, by HR and payroll software provider Ciphr, found that around one in four (23%) has run out of money before their ‘payday’ (or equivalent) at least once this year. This figure includes over a quarter (28%) of employees in full- or part-time work, a third (36%) of people who are unemployed, and two-fifths (42%) of students.

For context, that’s around 12.4 million UK adults, over the age of 18, left without funds for day-to-day essentials (for however long) until their wages, benefits, pension, or similar, were paid. While this could have happened to some survey respondents just once this year, it’s possible that for many others it’s a regular occurrence.

Nearly a third (30%) of employees under 45 years old say they have also struggled to pay bills or buy food this year. This compares to one in seven (15%) workers aged over 45, or one in five (21%) of all UK adults.

People at the beginning of their careers (and, likely, on comparatively lower salaries) appear to be among the most affected by cost of living challenges this year.

Employees under 35 are the most likely to have taken on a loan or additional loans, as well as the most likely to have moved in with friends or family to save money (25% of 18-34-year-olds have reportedly done these things, well above the survey average of 10%).

Younger workers are also significantly more likely to have worked through illness this year, rather than take unpaid sick leave.

Fear of losing wages saw one in four (29%) employees go to work (or work remotely) when they were unwell. This rises to over half (55%) of 18-24-year-olds, two-fifths (38%) of 25-34-year-olds, a third (31%) of 35-44-year-olds, and a fifth (18%) of the over-45s.

Claire Williams, chief people and operations officer at Ciphr, says:

Employers have a responsibility, and vested interest, to support employees’ mental wellbeing and financial wellbeing where possible. While additional company sick pay schemes may not be financially viable for lots of employers, the use of health-orientated benefits, flexible working practices, and an empathetic approach to absence, can go a long way to alleviate the mental stress that can often accompany the physical stress that illness and time off work can create.

Claire Williams, chief people and operations officer at Ciphr

Some of the ways that people have looked to save money this year include reducing household spending (51% of the 2,000 people polled), cutting back or cancelling insurance coverage (13%), and reducing pension contributions (9%).

Around a quarter of surveyed employees have sought to boost their income by looking for a better paid job (26%), taking on more hours (28%), or taking on a side gig (17%). One in four (28%) workers over the age of 65 have also reportedly postponed their retirement.

The results of Ciphr’s cost of living survey are available at https://www.ciphr.com/cost-of-living-survey-results.

Joanne Swann, Content Manager, WorkWellPro
Editor at Workplace Wellbeing Professional | Website |  + posts

Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.

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