Citizens Advice Newcastle is seeing an increase in working people struggling to afford basic necessities such as food, energy, and housing. This trend reflects findings from a recent report by the Living Wage Foundation, which highlights the growing financial insecurity among low-paid workers across the UK.
The report shows that 31% of people paid below the real Living Wage have no savings at all, up from 24% in 2025. Furthermore, 40% of low-paid workers feel worse off than the previous year, and 59% do not expect their pay to keep pace with rising living costs over the next year.
Tracy Armstrong, Chief Officer at Citizens Advice Newcastle, explained that many households they support include someone in work yet still face negative budgets. More than half of these households have someone working full time, demonstrating that employment alone no longer guarantees financial stability.
“Our advisers are supporting growing numbers of people in work who are struggling to afford essentials and are forced to make difficult choices about which bills to pay,” Armstrong said. “We are also seeing rising levels of debt and financial hardship among working households with little resilience to cope with increasing costs.”
-Tracy Armstrong, Chief Officer at Citizens Advice Newcastle
The report reveals that 81% of low-paid workers struggle with or are unable to pay some or all of their bills. Only 10% could cover an unexpected £200 expense without difficulty, while 22% have less than £10 left each week after paying for necessities. The proportion of those with nothing left or who are further in debt after covering essentials has risen by 42% since last year.
Many low-paid workers have had to cut back on food or heating, fallen behind on bills or housing payments, or taken out payday loans to cover essentials. Megan, an education worker who participated in the research, shared her experience of financial hardship despite working full time, highlighting the lack of savings and ongoing struggles to afford basic items.
Emily Sawh, Co-Director of the Living Wage Foundation, emphasised that while inflation may have fallen, many low-paid workers continue to face hardship. She noted that the real Living Wage remains one of the most effective ways employers can help workers achieve greater financial security and stability.
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