Browse all articles
Written by Wesleyan

45% of UK workers request pay rise to help with inflation

financial planning
2 min read
Man sitting at desk with laptop on phone
  • Almost half (45%) of UK adults have or will ask for a pay rise this year to meet the rising cost of living.
  • A quarter (24%) plan to use any expected bonus to pay household bills.
As inflation levels continue to rise, almost half of UK adults (45%) will be asking their employer for a pay rise according to new research by Wesleyan. One in five (19%) have already made the request.
 
With the cost of living crisis set to worsen, Wesleyan’s research also found that nearly a quarter (24%) of UK adults who expect to receive a bonus this year will use the money to meet day-to-day costs, such as soaring energy bills or groceries.

Younger people are those most likely to ask for a boost to their pay packets, with nearly three in five (59%) of those aged 18-34 asking for a pay rise. This compares to just over a quarter (28%) of those aged 55-64.

The research also revealed that people are planning to tighten their purse strings with just over half (53%) of those expecting a bonus saying they would rather save it this year than spend it. Nearly a quarter (23%) will save the money into a standard or savings bank account, just under a fifth (19%) will put the money into an ISA and one in ten (11%) will invest the money in stocks and shares.

Nathan Wallis, Chief of Staff at Wesleyan, said: “Following the Governor of the Bank of England’s call for restraint, our data shows that many people will be doing the opposite and asking their employers for a financial boost.

“The fact that so many plan to use their bonus money to meet day-to-day costs shows just how much of a squeeze people’s finances are already under. It’s not unusual for people to save some of their bonus for longer-term needs such as retirement; but this is unlikely to be the case for many this year. It also means that the many people who built up a healthy savings pot during the pandemic are now dipping into it.

“In such a challenging environment, reviewing your finances will be key. People need to remember to work out what they can still afford to put towards their longer-term financial goals, making sure that this money is working as hard as possible – for example, by being invested in a tax-free Stocks-and-Shares ISA.”

Findings are based on consumer research of 2,000 UK adults, conducted by 3Gem between the 1st and 4th of February 2022.

You might be interested in...

Get financial advice

Need financial advice? Speak to a Specialist Financial Adviser from Wesleyan Financial Services - an expert in your key profession, whether you’re a doctor, dentist or teacher.

Effect of inflation calculator

Due to inflation, cash you hold today is likely to be worth less in the future than it is now. Use this calculator to see the potential impact of inflation on your money.