Seven in 10 workers ‘chronically broke’

Economic insecurity in Britain has become the “new normal”, according to a study which says seven out of ten workers are “chronically broke”.

The survey, by the Royal Society of Arts and Populus, suggests that less than one third of workers live “comfortably”, with 40% in a “financially precarious” situation, and the remaining 30% not able to get by.

The survey will make hard reading for Theresa May, who used her maiden speech as Prime Minister to pledge help for what she called the “just about managing”.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

It also found that 41% of workers had less than £1,000 saved, while 43% had no one in their households to whom they could turn in the event of financial hardship.

Figures released this week show employment at a record high, while inflation and stagnating wage growth have led to a drop in real wages and a rise in the cost of living.

Matthew Taylor, chief executive of the RSA, said the increase in the number pf people on zero-hours contracts, in temporary work, self-employed or in the so-called gig economy had led to a culture of “precarious work”, which was now accepted as the new norm.

He called for new rights, responsibilities and a modern social contract based on support for people as they navigate changes to the cost of living, technology, and Britain’s international competitiveness.

The Guardian suggested that the Government should “explore universal childcare; pay for the self-employed to take maternity or paternity leave; devolve the ‘national living wage’ to councils, and pioneer personal budgets for reskilling as the age of automation looms”.