Workers still struggling to make ends meet, research suggests

Workers are still struggling to make ends meet, with many struggling to pay bills, according to research.

The Work Foundation said its study suggested that the Government’s pledge to raise living standards faces a “substantial challenge”.

Its survey of almost 4,000 workers found that one in six said they struggle to pay their bills each month, and two in five revealed they have little income left for savings or holidays.

Years of wage stagnation and the cost-of-living crisis mean that for many, wages still do not cover basic living costs, the report said.

Only half of respondents believed wage increases were keeping up with the cost of living and just 43% expected an above inflation pay rise in the next 12 months.

Low paid workers were feeling the brunt of financial pressures, with only two in five of those earning less than £25,000 saying their pay is keeping up with the cost of living, compared to 73% of higher paid workers, said the report.

The Work Foundation noted recent ONS figures indicating that 1.35 million people have second jobs – an increase of 121,000 on the year and the highest level since records began in 1992.

Ben Harrison, director of the Work Foundation at Lancaster University, said: “Raising living standards is not just about figures on a spreadsheet, it’s about workers feeling more financially secure.

“Four years on from the start of the worst cost-of-living crisis in a generation, our analysis shows workers continue to feel the impact of nearly 20 years of stagnating pay packets.

“Second jobs are sometimes glamorised as side hustles or optional extras but economic necessity is often a key motivation.

“Despite a period of sustained pay increases, the growth in second jobs points to continued cost-of-living pressures that mean some workers are struggling to make enough money in their main roles and are taking on additional jobs to make ends meet.”

Published: 11/07/2025 by Radio NewsHub