[UK] COVID-19 has caused income loss for half of low paid workers

[UK] COVID-19 has caused income loss for half of low paid workers
08 Feb 2021

According to a TUC poll, 50 per cent of low-paid workers have lost income as a result of the COVID-19 pandemic, compared to 29 per cent of higher earners

A TUC poll has found that low earners are more likely to have been forced to cut spending and take on debt during the pandemic than either middle or higher earners. To support people who have been impacted, the TUC is calling for a ‘workers’ budget’ and the extension of the furlough scheme until the end of 2021.

More than a third (37 per cent) of workers surveyed said that their household had suffered a reduction in disposable income since the pandemic began. The figure rises to half (50 per cent) for workers with annual earnings below £15,000. It is only three in 10 (29 per cent) for workers earning more than £50,000.

The TUC reportedly says that low-paid workers have been hardest hit because low earners are more likely to have insecure work - like zero-hours contracts - which offer them no protection when their working hours are reduced. Low-paid workers also have less flexibility in their household budgets, making it difficult to reduce spending.

Your Money reports further details of the poll’s findings and recommendations from the TUC’s budget submission.

According to a TUC poll, 50 per cent of low-paid workers have lost income as a result of the COVID-19 pandemic, compared to 29 per cent of higher earners

A TUC poll has found that low earners are more likely to have been forced to cut spending and take on debt during the pandemic than either middle or higher earners. To support people who have been impacted, the TUC is calling for a ‘workers’ budget’ and the extension of the furlough scheme until the end of 2021.

More than a third (37 per cent) of workers surveyed said that their household had suffered a reduction in disposable income since the pandemic began. The figure rises to half (50 per cent) for workers with annual earnings below £15,000. It is only three in 10 (29 per cent) for workers earning more than £50,000.

The TUC reportedly says that low-paid workers have been hardest hit because low earners are more likely to have insecure work - like zero-hours contracts - which offer them no protection when their working hours are reduced. Low-paid workers also have less flexibility in their household budgets, making it difficult to reduce spending.

Your Money reports further details of the poll’s findings and recommendations from the TUC’s budget submission.

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