The cost of living crisis
The arrival of the Health & Social Care Levy at the end of April will come as a blow to millions across the UK as their net pay drops for the first time in years. This, against a backdrop of rising living costs is threatening to propel millions of working adults closer towards the poverty line. And it couldn't have come at a worse time either. As the country finally emerges from two financially punishing years due to Covid, wages will drop and living costs will soar.
Financial hardship for all Britons
It was just over a year ago that we surveyed 2000 UK workers on the impact of Coronavirus on their finances and mental wellbeing. The results were sobering, and revealed the true impact of Covid on employees' finances and the role they expected their employers to take to support them.
And yet it's not Covid that UK workers are concerned about in 2022. According to a Financial Times report* the cost of living is now far more of a concern to Britons than Covid, and for good reason. Stagnant wages and rising inflation (set to reach over 7% this year) are pushing many to the brink. And worse may yet be to come as the world suffers the effects of the Ukraine war and other geopolitical events.
Financial solutions are available
But it's not all doom and gloom. Here on the home front, there are solutions available for workers to take advantage of to mitigate the effects of rising living costs. The key is financial literacy and empowerment for employees - and for employers to take a greater role in the provision of this.
For instance, there are many tax schemes available that many workers can take advantage of to counteract the effects of a net pay reduction. Like the Marriage Allowance, for example. Millions of married couples are eligible for this tax break, but many don't even realise it.
There are other cost-effective tax initiatives in place for employers to support their employees without major investment or lengthly wellness contracts. For example, here are 5 low-cost ways to support employees get back to the workplace. These initiatives are available to all employers looking to enhance the financial wellbeing of their employees.
Financial support and guidance resources
Most employees will understand the new NI increase in principle, and although employers are encouraged to provide info via the payslip, many will still be unaware of its purpose and impact. The Health & Social Care employee guide provides a detailed overview of the Levy and how much workers can expect to pay. But it's not just employees who will be affected. With the cost to employ increasing by an equivalent of 9%, employers will also feel the pinch. So we've prepared a Health & Social Care employer guide that includes some planning tips to help employers to mitigate this increase.
PayDashboard's payslip solution for financial wellbeing
As the technology company linking employee financial wellbeing to payday, financial wellbeing underpins all that we do. We believe that employees should be given the tools that they need to understand their pay (and in turn, their payslip) as well as their taxes and allowances by their employer at a time when it really matters. Which is why we provide a suite of financial education to our users alongside their digital payslip, helping them to understand their pay at the time when money is most on their minds, and reducing the number of employee queries to HR and Payroll teams in the process.
Whether you are a payroll provider wanting to bring more value to your client payroll service, or an employer wanting to provide more financial support to your employees, our solution can help. PayDashboard's payslip integrates with your payroll software, offering you an efficient and scalable solution to cut costs and create efficiencies for your team. Worried about migrating to the cloud? Don't be. The solution includes comprehensive support and training from our Client Success Team every step of the way.