With the National Minimum Wage increasing from April 2016, Provident wanted to see how far Brits can make their monthly salaries stretch. Out of nearly 2,000 respondents, 19% admitted that they struggle financially within two weeks of getting paid and 40% don’t save any money on a monthly basis.
The survey highlighted that increasing the National Minimum Wage would be welcomed by many Brits, especially the 40% who have had to resort to other forms of financial support to get them to pay day.
When it comes to regions that struggle the most financially, it seems that after Northern Ireland, only 28% of people from London said that they don’t struggle with their finances on a monthly basis. This is slightly surprising since Londoners, on average, get paid the most, with salaries reaching to £28,177 per year. However, it seems that the younger generation is also a lot more money conscious with nearly 4% of 18-24 year olds saving more money on a monthly basis than those in their late 20s and early 30s.
Tim Anson, Commercial Director at Provident said: “It’s surprising that in such a thriving city people are struggling to budget. It’s encouraging to see that the younger generation is saving more on a monthly basis.”
With more jobs paying employees the National Minimum Wage, 35% of Brits have said they that haven’t had a pay rise in two years or longer. Most Brits surveyed said that an additional £251-300 on top of their salaries would help them to live comfortably, showing that there is still a way to go when it comes to helping those who are trying to save to get on the property ladder or even for a pension. The majority of people surveyed contribute to a pension, which might be a result of the Workplace Pension Scheme, however over 40% of people said that they still don’t contribute to a pension.
Not everyone in the UK is feeling a financial pinch, industries that will definitely be enjoying more financial rewards include IT, Engineering, and Energy and Utility, with average salaries going over £30,000 per annum. Industries that are most likely to feel a difference with the National Minimum Wage increase in April 2016 are Catering, Retail and Charity, where 56% of people said that their salaries are not enough to live suitably on a monthly basis.
