Cost-of-living crisis still hitting workers, report claims

Workers believe they need to earn an extra £13,000 a year to feel stable amid the ongoing cost-of-living crisis, according to a new report.

Employment group Reed said its survey of 5,000 workers revealed a significant “comfort gap” on pay.

When asked what income they needed to achieve a comfortable standard of living, the average figure cited was £52,000, which Reed said was “way above” the current figure of £39,000.

The study revealed escalating financial pressures on workers, said Reed.

Ian Nicholas, global managing director at Reed, said people seemed to be coming to terms with the reality that significant pay increases may not be on the horizon.

He said the study also reflected a shift in the jobs market, adding: “What was once a candidate-driven landscape, where switching jobs for a pay bump was common, has now stabilised, making such moves less frequent.”

One in four respondents said they were left with £100 or less after essential bills each month while just under one in 10 revealed their entire salary was taken up by necessities, leaving them with no disposable income.

Reed said the cost-of-living crisis has left its mark on workers, with more than one in four of those surveyed saying their income stretches less than it did four years ago.