Nearly seven in ten Britons have had no wage increase since the onset of the pandemic, according to new research shared with City A.M. today.
While 28 per cent have seen their salary decrease since the beginning of the pandemic, 38 per cent said their employer has paused pay rises because of the Covid-19 crisis.
Meanwhile, 24 per cent have had their employee benefits and perks cut by their employer since March 2020, according to financial comparison website NerdWallet, which surveyed 939 UK adults in full-time employment.
The research found that 32 per cent of full-time workers in the UK are currently spending less and saving more due to concerns about being made redundant.
NerdWallet’s study also revealed that inflation is weighing on the minds of Britons, with 51 per cent concerned about how it will impact their finances.
Almost a third (31 per cent) said they will start to look for a new job within the next six months if their wages do not increase in line with inflation.
“Understandably, businesses have had to make difficult decisions regarding wages, furloughing and redundancies during the pandemic,” commented Richard Eagling, senior personal finance editor at NerdWallet.
Eagling pointed out that these decisions have impacted millions of people’s finances. “And with rising inflation adding further pressure, many will find their usual budgets stretched to breaking point,” he added.
“Positively, there are support mechanisms in place for those struggling financially because of the pandemic,” Eagling continued.
For example, banks have pledged to help those who find themselves in financial difficulty due to Covid-19, although this help varies from company to company.
“Likewise, some organisations such as UK Finance have promised to offer free support to those in need.”
“In reality, financial challenges will continue to present themselves as the UK emerges from the pandemic. As such, it is vital that people take stock of their finances and, if problems are identified, seek assistance as and where it is available,” Eagling concluded.