Navigating the Cost of Living: A Closer Look at Financial Well-Being in the UK
As we get ready for the General Election, many people are worried about money. A recent survey by Indeed shows that more than 2 in 5 (42%) Brits are struggling to make ends meet. This data, from over 2,000 people, highlights differences in financial comfort across regions and the big impact of the cost of living crisis on workers in the UK.
Regional Differences in Financial Comfort
Interestingly, people in the North East of England feel the most financially comfortable, with less than a third (32%) struggling. In contrast, nearly half (48%) of people in Scotland say their paycheck isn’t enough to cover their expenses. This shows how different parts of the UK face different economic pressures.
Cost of Living: A Major Worry for Voters
The survey shows that nearly half (47%) of the population is very worried about the cost of living, which causes a lot of stress about financial stability. Many people think the new government should focus on fixing this issue, with 49% wanting lower costs and 39% asking for wages to match living expenses.
Stagnant Wages and Inflation Problems
Since the cost of living crisis began in 2021, nearly 1 in 5 Brits have not seen any change in their salary, and 15% have even had their pay cut. While the average pay rise for some has been 3%, this isn’t enough to keep up with the peak inflation rate of 11.1% in October 2022. Even though inflation has recently dropped to 2%, 60% of people still don’t feel better off.
Struggles of Different Generations and Extra Income
Millennials, aged 27-42, are especially struggling, with over half (52%) finding it hard to get by on their current salary. To cope, nearly half (47%) have taken on second jobs or side gigs. This is also true for 42% of Gen Z respondents (16-26), compared to 34% of the general population. Rising transport costs have made more millennials work from home (44% vs. 30% overall).
Views on Wealth and Financial Security
Today, UK voters think you need an income of £96,000 to be considered wealthy, with households needing £115,500 combined. Interestingly, 16% believe a household needs over £200,000 to be seen as wealthy. People with higher incomes think you need even more; households earning above £100,000 say £164,500 is needed to feel ‘well-off’.
For a comfortable standard of living, Brits estimate you need an individual income of £38,130, which is a bit more than the average UK salary of £35,822. These numbers show the strong financial pressures many people face and the urgent need for policies that address wage growth and cost of living challenges.
As the election approaches, these financial insights are crucial for voters, highlighting the need for economic stability and support for all regions and generations.