Millions of low-paid workers across the UK are struggling to build up savings, with new research finding just one in 10 could comfortably pay an unexpected £200 bill. The Living Wage Foundation has warned that many workers have little money to fall back on if they are suddenly hit with an extra cost, such as a broken washing machine or an unexpected vet bill.
Survey reveals widespread financial strain
Its latest Life on Low Pay report surveyed more than 2,000 UK workers earning below the real Living Wage. The research found almost a third, 31%, had no savings at all, up from 24% last year.
The Living Wage Foundation estimates there are currently 4.4 million workers across the UK earning below the real Living Wage, which is £13.45 an hour nationally and £14.80 in London.
Bills and debt pressures mount
The research also found 81% of those surveyed were struggling with, or unable to pay, some or all of their bills. Just 10% said they would be able to cover an unexpected £200 bill using their current income without difficulty.
For some workers, there is also very little left once the essentials have been paid. More than one in five, 22%, said they had less than £10 remaining each week after paying for necessities including food, housing and bills. Another 17% had nothing left or were already further in debt after covering these costs.
Living Wage Foundation responds
Emily Sawh, Co-Director of the Living Wage Foundation, said: "While inflation may have fallen, this research shows many low-paid workers continue to be impacted by the cost-of-living crisis. More people are running out of savings, relying on debt, and experiencing hardship than a year ago."
She added: "Nearly one in three workers now have no savings at all. That leaves millions of people with little protection against unexpected bills or future rises in household costs."
The research found 61% had cut back on food or heating, fallen behind on bills or housing payments, or used a payday loan to cover essentials during the past year. Two-fifths of low-paid workers also said they felt worse off than they did in 2025, while 59% don't expect their wages to keep up with living costs over the next year.
The findings come ahead of the new real Living Wage rates being announced on October 15.
