Working But Still Poor

The summer holidays are in full swing, and social media is awash with envy-inducing photos of beach trips and exotic getaways. But amidst the holiday cheer, it's crucial to remember that for millions of hardworking people in the UK, the reality is far from idyllic. The rising cost of living has made even the simplest pleasures, like a day at the seaside or a moment of quiet reflection, feel out of reach.

The stark truth is that in-work poverty is a growing problem. The idea that a job should provide stability and a path to a better life is slipping away for many. The gig economy, with its unpredictable hours and pay, is leaving people financially vulnerable. The harsh reality is that millions are working multiple jobs just to keep their heads above water. The Joseph Rowntree Foundation's research paints a bleak picture:

61% of working-age adults in poverty live in households where at least one adult is employed.

The situation is even more challenging for part-time and self-employed workers, who face double the poverty rate compared to their full-time counterparts.

The pervasive nature of in-work poverty is further compounded by job insecurity.?The gig economy,?with its fluctuating pay and lack of predictable schedules,?is leaving many individuals vulnerable to financial instability.?The University of Hertfordshire and Britain Thinks research reveals a concerning trend:?

4.4 million people in England and Wales are engaged in gig work at least once a week,?often supplementing full-time jobs to cope with the rising cost of living.

This isn't just unfair; it's holding us all back. When people are constantly stressed about money, it affects their wellbeing, their productivity, and their overall happiness.

As leaders, we have a responsibility to create workplaces where everyone feels valued and supported, regardless of their financial situation.

The emotional and psychological toll of poverty can be immense, impacting mental health and creating a cycle that's difficult to break.

So, what can we do? The good news is that there are concrete steps we can take to make a difference. Here are some recommendations for Leaders:

• Prioritise Living Wages and Financial Wellbeing:?Ensure all employees receive a living wage that allows them to meet their basic needs and avoid poverty.?Offer financial literacy programmes and resources to help employees manage their finances effectively.?The IFS report highlights that low wages and rising household expenses are key drivers of in-work poverty.?By providing a living wage and financial education,?companies can directly address these issues.
• Champion Flexible Work Arrangements:?Embrace flexible working hours,?compressed workweeks,?and remote work options to accommodate employees' diverse needs and responsibilities.?The IFS study found that the rise in in-work poverty is partly linked to the increase in single parents entering the workforce.?Flexible work arrangements can be particularly beneficial for single parents and those with caregiving responsibilities.
• Invest in Skills Development and Career Progression:?Provide opportunities for employees to upskill and advance within the company.?Offer training programmes,?mentorship opportunities,?and clear career pathways to enhance job security and earning potential.?The research emphasises the link between low skills and in-work poverty.?By investing in skills development,?companies can empower their employees to access better-paying jobs and improve their long-term financial prospects.
• Cultivate a Supportive and Inclusive Workplace Culture:?Foster an environment where employees feel comfortable discussing mental health and seeking support.?Offer access to Employee Assistance Programs (EAPs) or mental health resources.?The emotional and psychological burden of poverty can significantly impact employee well-being.?By creating a supportive culture,?companies can help mitigate the mental health challenges associated with in-work poverty.
• Advocate for Policy Change:?Lobby the government to implement policies that address the root causes of in-work poverty.?Advocate for increased investment in affordable housing,?accessible childcare,?and a welfare system that supports upskilling and training.?The research highlights the critical role of government policies in tackling in-work poverty.?By actively advocating for change,?companies can contribute to creating a more equitable society.

Remember, a happy and healthy workforce is a productive one. By tackling in-work poverty, we're not just doing the right thing, we're creating a brighter future for everyone. It's time to turn compassion into action and build a more equitable and prosperous society for all.

Our next free event takes place on the 26th September at 12.30pm, register here for Unlocking the Power of Executive Coaching for an Inclusive Culture.

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