The Royal Society of Arts has carried out a study in which it found that at least 70% of the UK’s working population are “chronically broke”.
The RSA surveyed more than 2,000 workers and found that 30% said they lived comfortably, 30% said they were not managing to get by with a further 40% saying finances were permanently precarious.
The report found that 32% of the UK’s workers have less than £500 in savings and 41% have less than £1,000. Almost 30% are concerned about their level of debt. This insecurity spread to their thoughts on their jobs and careers with only 40% of employees feeling they have good opportunities to progress in their line of work.
The UK labour market recently released figures showing employment reaching a record high. However, the problem seems to be debt laden households are struggling to finance their existence, even though work is available.
The insecurity in work is evidenced by nearly 1 million people on zero hour’s contracts and 1.7 million in temporary work. Nearly 5 million people are self-employed, which is an all time high and there are an estimated 1.1 million people in Britain’s gig economy which, in just five years, is equal to the number of NHS workers in England.
Precarious, part-time work seems to be a theme and there is a lack of control or confidence in finances while in employment. Whether this structure of work practice and employment leads to more debt and insolvency such as bankruptcy is a moot point.
The report calls for new rights and responsibilities based on support of people as they navigate changes to the cost of living, taking debt into account.
It states the Government should explore universal childcare, pay for the self-employed to take maternity or paternity leave and look at personal budgets for reskilling to make the workforce more flexible.
If you’re looking for debt advice, Farleys Solicitors have personal insolvency experts who can provide advice tailored to your needs. Call us today on 0845 287 0939 or contact us online.