Six million workers stuck in 'insecure jobs' left struggling to pay bills
Six million workers are grappling with the cost-of-living crisis while toiling in “insecure” jobs, research reveals today.
Analysts said grafters on zero-hours contracts, the low-paid self-employed, employees getting less than 16 hours a week and people in casual, seasonal, fixed-term and agency roles were worse placed as they battled through the hardship. A Survation study for the Living Wage Foundation found 19% of UK workers are in insecure jobs, while 10% are in insecure jobs that also pay below the Real Living Wage. The figures represent 6.1m and 3.4m people respectively.
Some 59% of all shift workers have received less than a week’s notice of working hours, with 13% being given less than 24 hours’ notice. Critics say it makes life difficult for people to arrange other employment and plan paying bills and - with some even driven to foodbanks.
A quarter of shift workers have had stints cancelled unexpectedly by their boss - with 90% not given their full rate of pay and 22% plunging deeper into debt or turning to credit cards. The Foundation said “workers who are most affected by insecurity are those least well placed to manage its financial burdens”.
Workers in insecure jobs are being hit hard by the cost of living crisis (Getty Images)It highlighted cleaners, delivery drivers and some NHS staff as being up to five times more likely to be in insecure jobs than those earning at or above the Real Living Wage. The minimum, hourly, legal rate for staff aged 23 is £10.42, while the voluntary Real Living Wage is £10.90 an hour for workers of all ages, rising to £11.95 in London.
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The Foundation urged firms to sign up to its latest scheme, Living Hours. Under the project, employers pledge to provide at least four weeks’ notice for every shift, with guaranteed payment if shifts are cancelled within that notice period.
Companies also offer a guaranteed minimum of 16 working hours a week, unless the worker requests fewer, and a contract reflecting hours worked.
Living Wage Foundation director Katherine Chapman said: “Soaring prices have rightly shone a spotlight on pay this past year, but this research makes clear that reliable working hours are as vital to workers’ financial resilience as a Real Living Wage. It is shocking that 3.4m workers are facing the cost-of-living crisis in low-paying jobs with unstable working hours - making planning a life and a budget impossible.
“While the rate of inflation has begun to fall, households across the country don’t need economists to tell them that prices remain exorbitantly high. That is why we’re calling on employers to join those who have already stepped up during this crisis and commit to provide workers with Living Hours - secure, guaranteed hours and notice of shift patterns - alongside a Real Living Wage.”
Joseph Rowntree Foundation senior policy adviser Louise Woodruff said: “Reliable hours and a Real Living Wage are the foundations of good employment, making it truly shocking that this report reveals millions of people are navigating the cost-of-living crisis in low-paid, insecure jobs. It’s clear we cannot beat in-work poverty without profound changes in the UK labour market; the Living Wage Foundation’s Living Hours scheme provides employers with the framework to lead us towards a future of stable employment and decent pay - of dignity for all.”
Survation polled 2,023 people online in April.
Living Wage Foundation director Katherine Chapman writes exclusively for the Mirror
Against a backdrop of pandemic and soaring inflation, UK businesses have defied the odds and signed up to join the Living Wage movement in record numbers over the past two years. There are now 13,000 Living Wage Employers across the UK, signed up to pay the independently calculated Real Living Wage to all directly employed and subcontracted staff.
While much-needed progress has been made on tackling low pay, with the percentage of people earning below the Real Living Wage falling from 22% to 12% since 2016, not so much attention has been given to insecure work. In seven years, the incidence of insecure work has only fallen marginally from 23% to 19%.
Insecure work – especially when coupled with low pay – remains a vicious combination trapping millions of people in in-work poverty. New research from the Living Wage Foundation released today reveals that a staggering six million UK jobs are insecure, including over a million people on zero-hours contracts.
As well as making it hard to budget and plan, insecure employment costs workers. This "insecurity premium" can add up to £600 per year, because of last minute shift cancellations or being called into work at short notice. For example, 27% of insecure workers had to spend more on travel, 17% have had to pay higher childcare costs and around 24% have had shifts cancelled unexpectedly with 25% then not paid at all. With pay packets already eroded by high inflation, these additional costs place yet another pressure on those at the sharpest end of the cost-of-living crisis.
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The challenge is significant, but so is the opportunity for businesses to step up and offer secure, reliable, decently paid work. There are now nearly 100 employers across the UK including Aviva and Spare Room, who have all committed to our Living Hours scheme to tackle insecure work.
The strides made in combating low pay in the UK serve as a testament to the power of what can be achieved when employers step up to provide a decent standard of living for employees. Job security is a critical next piece of the picture if we are to eradicate in-work poverty in the UK.
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