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Whitepapers·9th February 2022·2 min read

An employer's guide to the cost of living crisis

The UK’s rate of inflation jumped to 10.1% in July 2022, the first time it has registered a double-digit annual increase in more than 40 years.

Many people are already making cutbacks, with the latest data from the Office of National Statistics (ONS) showing 4 million people were reducing energy use in their home and around 16 million cut back on food and essentials between March and June 2022.

3 in 4 people aged 55 and over are worried about utility bills.

Rising utility bills are a concern for everyone but in particular older people who are more likely to be on a fixed income. For those still working, they’re looking to their employers for support.

This research shows that people, across the board, are looking to cut everyday living costs, including food. Some will just be reducing previously high discretionary spending on luxury foods, but now it seems that Pensioners, disabled people and even families with young children, including working households who generally are already cost-conscious, may now be cutting back on essential basic foods or other goods. This is really worrying.

Baroness Ros Altmann, former Minister for Pensions

How do people feel about the future?

Younger people are more anxious about the future - more than 1 in 2 under 35 year olds are unsure about the next six months.

What is this doing to people's mental health?

  • 3 in 5 employees agree that money worries affect performance

  • 1 in 3 employees agree that money worries affect mental health

  • 1 in 2 people now feel anxious about their finances

What can employers do?

  1. Salary Exchange

  2. Workplace Savings

  3. Pension Redirect

  4. Financial Education

Download Cushon's research paper: 'An employer's guide to the cost of living crisis' to learn more about these four simple ways to help your employees with the rising cost of living.

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NatWest Cushon