Around 77% of low-paid workers feel financially “worse off” compared to last year, a Usdaw survey has revealed.
The trade union’s survey consisting of 6,500 members has also disclosed 75% of respondents struggled to pay gas and electricity bills
Around 66% have relied on borrowing to pay everyday bills with half of them struggling with repayments and almost 75% have reported financial issues have been affecting their mental health.
READ MORE: BRC and Usdaw urge caution surrounding lifting of Covid self-isolation laws
Data from the Office for National Statistics (ONS) have indicated real wages have fallen behind increasing inflation.
Figures have confirmed an inflation rate of close to 5.4% in January, which is the highest in three decades.
Additionally, the cost-of-living crisis is expected to be exasperated with rising prices, high energy bills and national insurance tax hike this April.
The results come as Labour leader Keir Starmer has indirectly criticised the Bank of England governor Andrew Bailey for asking workers to not ask for a pay rise to control inflation.
Starmer said it was “reasonable” for workers to demand higher wages, but the government should take larger responsibility in tackling the cost-of-living crisis.
“The government’s promise to ‘build back better’ rings hollow now, with prices increasing and wages not keeping pace with inflation,” Usdaw General Secretary Paddy Lillis said.
“This cost of living crisis is also a mental health crisis. Our members have worked throughout the pandemic and they were applauded as key workers, but claps do not pay the bills. With prices rocketing and wages barely growing, it is inevitable that stress, anxiety and mental health concerns are increasing.”
Lillis added: “Our survey shows that low-paid working people desperately need substantial government action to help them through the cost of living crisis.”
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