One in six UK workers is now struggling to pay their bills at the end of every month, according to a major new study that lays bare the ongoing impact of the cost of living crisis — even as inflation cools and real wages begin to rise.
New data from the Work Foundation at Lancaster University reveals that 17 per cent of workers surveyed say they regularly struggle to cover essential outgoings. A further 40 per cent report having little or no disposable income left over for savings, holidays or emergencies.
The findings come as separate figures from the Office for National Statistics show that more than a quarter of UK adults (26%) cannot afford an unexpected but necessary expense of £850 — the highest proportion since September 2024.
Ben Harrison, director of the Work Foundation, warned that Britain’s deep-rooted pay stagnation is still shaping day-to-day life for millions. “Raising living standards is not just about figures on a spreadsheet — it’s about workers feeling financially secure,” he said. “Four years on from the start of the worst cost of living crisis in a generation, our analysis shows workers continue to feel the impact of nearly 20 years of stagnating pay packets.”
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