Hear from employers and members on the impact delivered by Wagestream
Our cost-of-living case studies look at the real-world impact on people. They’re designed to highlight the decisions that rising prices are forcing people to make. Everyone’s situation is unique and everyone is affected by financial shocks in different ways. We’re trying to bring those ways to life.
Mark, 25, works in the charity sector and lives with friends in London. A politics graduate, Mark spent several months on Universal Credit earlier this year while in-between jobs. During this time he cut back on everything, including the length of the showers he took in his flatshare.
“I got into the system roundabout when the £20 uplift was scrapped, and when fuel poverty campaigns were hitting the headlines again,” he says. “We got a tracker for our water and electricity in our flat, and kept an eye on things like shower times, and our heating.
“Now I notice a world of difference being in full-time employment again, but it was very, very difficult.”
Even now Mark has a permanent job, almost all of his earnings go “towards shouldering the cost-of-living crisis” and paying off student loans.
He is often concerned about money as a result.
“Rent prices are up, and wages haven’t gone up at that rate. It’s still very difficult now that I’m in full-time work. I’m on an entry-level salary, and you find yourself not able to save up. The vast majority of your earnings, and then some, goes towards shouldering the cost-of-living crisis.
“In my case, as it is the case with a lot of my peers, there is that immediate worry and daily anxiety of paying bills, paying for rent and other costs of life.”
Mark is unable to save and is worried about his financial future.
He knows he will have to consider moving away from London due to lack of funds.
“You obviously have this long term anxiety,” he says. “There is a cost-of-living crisis, and the housing crisis. It feels quite similar to climate anxiety for me and my generation – a feeling of impending doom.
“It leaves you thinking 1) should I leave the UK full stop, given the depth of the crisis compared to other countries and the added uncertainty of Brexit? And 2) leaving the cities. London is expensive, and even Manchester isn’t that cheap these days.”
The charity worker, who would be interested in a flexible pay scheme if offered one, believes employers can do more to create an environment where staff feel safe to raise concerns over both pay and their wider financial worries.
“Employers should be open to employees’ needs and try to be present, whether that’s having regular meetings where concerns on pay, or on management, can be voiced,” he says. “It’s really hard to combat something so structural and ongoing when you can’t even talk about it, when it’s almost taboo or considered a bit strange to talk about pay or struggling. It’s really challenging, so any work that tries to bridge that gap between people’s experiences and actually talking about them is valuable. If an employer can facilitate that happening, it’s brilliant.”
How can you help employees that are struggling with prices going up rapidly? Check out out post on four ways to support your staff through the cost-of-living crisis.
Our cost-of-living case studies look at the real-world impact on people. They’re designed to highlight the decisions that rising prices are forcing people to make. Everyone’s situation is unique and everyone is affected by financial shocks in different ways. We’re trying to bring those ways to life.
Joe, 28, works as a barista in a central London bar/cafe, and lives in a rented one-bedroom flat in North London with his partner.
Joe works 40-hour weeks with frequent overtime. He is employed at his bar/cafe through an outsourced company, and earns below the London Living Wage. His partner also works in the hospitality sector.
The couple’s energy provider went bust a few months ago, and they were automatically shifted over to a new provider. Even after doing extensive meter tests, negotiating a payment plan, and reducing energy consumption as much as possible, Joe’s gas and electric bill has soared to over £150 per month.
Before energy bills, transport fares and food prices rose significantly, Joe “never had a lot of spare cash”, but could just about cover his costs each month. Today, however, the cafe worker finds “it’s getting harder to make ends meet”.
He says: “I know I am personally spending more than I’m earning, and dipping into savings, and that’s not sustainable because they [savings] will run out eventually.
“It’s just that everything costs more money.”
“You notice certain grocery and other daily costs going up. The biggest thing for me was our energy bill, it’s ludicrously high… The only tariff we are able to sign up to is crazily expensive, and there is not really a chance to get anything cheaper. We’re paying the amount we should be paying for a whole house. Even what they’ve reduced it to, it’s [the energy bill is] two times what it should be.
“With rent and bills and basic costs, that basically eats up all the money we have earned in a month at this point. Not much is left for saving or enjoyment.
“How are my wages going to cover more increases?”
The situation has had an impact on Joe’s mental wellbeing.
“I just worry that I’m going to run out of savings and have to make lifestyle changes I don’t want to have to make,” he says. “Like working a lot more, moving further out of London, having to cut back on any nice things. It’s not like we live a crazy life anyway. You just worry that there are going to be hard times.”
He explains: “I don’t want to have to work 50 or 60 hour weeks, as I know that my life and my mental and physical health would deteriorate a lot – and I don’t want to have to move to Zone 6 just so we can afford to rent.
“There are worries about how much longer, how much further can this go before we have to start sacrificing the things that we have expected from life – like a holiday here and there, living in a nice-ish area, going out for a meal and a drink once in a while. We’re feeling more and more like it’s a struggle.”
Joe has already taken action to reduce his spending and is speaking to management at work about a potential pay increase.
“I’m trying to budget the best I can, being careful, trying not to spend too much,” he says. “You do feel quite powerless… It is the kind of thing where you just feel ‘ooph, okay, just hold on and see what happens and where we end up’.”
The cafe worker said the ideal help he needs at this point is a pay rise. He also believes ministers should make a similar move to that made by the French government earlier this year, and force energy giants to take some of the financial hit of rocketing energy costs by limiting bill hikes to a set percentage.
“Support is needed to increase people’s wages following the increases in how much life costs for everyone,” he says. “We have a really, really low wage economy, so everyone should be paid more. And these energy companies are having their biggest profits right now… Ordinary people are having to carry the weight, which is how it’s been going with so many crises since 2008.”
Joe concludes that the current cost-of-living increases have seen “a deepening of general problems that lots of people were facing”. He says: “I’ve always worked fairly low wage jobs, so you’re never paid a lot more than your outgoings, but it’s a lot more stark now. I’m earning less than I need to spend because of my outgoings, so the general anxiety becomes a lot more acute.”
How can you help employees that are struggling with prices going up rapidly? Check out out post on four ways to support your staff through the cost-of-living crisis.
Our cost-of-living case studies look at the real-world impact on people. They’re designed to highlight the decisions that rising prices are forcing people to make. Everyone’s situation is unique and everyone is affected by financial shocks in different ways. We’re trying to bring those ways to life.
Ale, 30, works full-time in a desk-based role in the travel sector. The Londoner, who is originally from Italy, has also previously held jobs in hospitality and publishing in the capital.
After years spent sharing with flatmates, Ale now lives alone and works from home two days per week. Her energy bills have more than doubled in recent months, which has put pressure on her finances – especially when combined with rising transport and other costs.
“My electricity bill has gone up by 100% at least,” she says. “My bus fare used to be £1.50 and now it’s £1.65, and I take the bus to work three times a week, so obviously this adds up and impacts.
“Some food prices, especially for things I usually get like some Italian cheeses and cold cuts, are absolutely out there and crazy now. It’s partly because of Brexit.”
The travel expert used to save modestly, but has burned through those savings.
“I used to save a certain amount of money every month, but I’ve gone through that pot,” she says. “I’ve now made peace with the fact that I’m going to have very little savings.
“I’m thinking: ‘I haven’t done anything for a couple of years, and I just really want to enjoy my life now, so I guess I won’t have any savings’.”
This resignation does not stop the worker feeling concerned about money and the future – Ale now frequently worries about her finances.
She says: “I think about money almost every day, at least once a day. Sometimes I think it might be easier to go back and live in Italy, in terms of the cost of life, but it would be much harder there for other reasons.”
Ale, who refers to her salary as “a joke”, suggests implementing pay rises is the “first thing” employers should look to do, if at all possible.
She also believes there is more that companies can do to help alleviate the financial pressure lower-paid staff are currently experiencing.
The employee suggests companies offer more benefit options, such as reward scheme opportunities.
“Giving other kinds of benefits and rewards would also be helpful, especially when it comes to buying food. It would be good to also help with lunch when people are at work, or to offer to pay part of the cost of transport to the office,” she says.
“In a previous job there was a website where I could sign up if I wanted to use Nectar, or other things. You could get £5 cashback, or discounts at Iceland and other supermarkets. It was helpful.”
How can you help employees that are struggling with prices going up rapidly? Check out out post on four ways to support your staff through the cost-of-living crisis.
Money worries
Recent research from Wagestream highlights how money worries at work can significantly impact wellbeing and performance, reducing cognitive capacity by up to 13 IQ points. For NHS staff, these challenges are particularly acute, given the demanding nature of their roles. Wagestream is helping to alleviate this burden, enabling staff to focus more fully on their vital work.
"Thinking about debt and money worries, you've always got that in the back of your mind. I feel like Wagestream definitely helps me do a better job in work."
Financial benefits
Wagestream offers a money management toolkit that helps NHS staff with budgeting, spending, and reducing stress. By building savings pots and providing flexible access to earnings, staff have reported feeling more in control of their finances and less stressed.
"With Wagestream, I can build my pots to accomplish my goals, and it feels like I don't have to do much to do that."
NHS Support
Now accessible to over 800,000 NHS workers across more than half of NHS Trusts in the UK, Wagestream is making a tangible difference. Staff are more focused and engaged, with many reporting improved sleep and greater positivity towards their employer.
"Having Wagestream just takes some of that pressure away. I feel like I'm more present in work and can involve myself more."
The impact has been significant:
- 91% feel more positive towards the NHS as an employer
- 76% feel less stressed
- 80% feel more in control of their finances
- 22% sleep better at night
- 25,863 are saving with Wagestream, many for the first time
"I highly recommend Wagestream to build all your dreams."
For NHS staff, Wagestream is more than just a financial tool; it’s a lifeline that enables them to perform their critical roles with less stress and greater peace of mind.
Honest Burgers experienced a visible rise in employee perception among their team as a result of implementing Wagestream
For Next, the impact of the financial wellbeing programme has been crucial to build financial futures
Talk to us about the positive impact we can have on your teams and your business.
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