£11,000 pay gap highlights benefits of flexible working
Umbrella.co.uk is highlighting the financial benefits of flexible working, after new research found that British workers are £11,000 worse off each year due to 15 years of wage stagnation.
Resolution Foundation research, which was shared with the BBC, focused on low-and-middle income families. It investigated how wages might have increased if rate of wage growth pre-2008 had continued until today.
Researchers also found that typical UK household incomes have slipped compared to Britain’s near neighbours. In Germany, the household income gap has slipped from £500 in 2008 to £4,000 today.
Last week, Chancellor Jeremy Hunt acknowledged that households were under a financial strain at the moment. With most wages not keeping pace with rising costs, millions of Brits have essentially taken a pay cut in recent months.
But the Resolution Foundation says the problem extends back much further.
If wages had continued to grow at the rate observed before the 2008 financial crisis, the average worker would now earn £11,000 more annually, accounting for inflation.
Umbrella.co.uk director Miles Grady has highlighted flexible working as one potential remedy for stagnant wage growth.
He said: “Recent price increases have left millions of British workers worse off. When traditional employment is no longer paying enough to fund your lifestyle, flexible working can provide a viable alternative for some people.
“Our services at Umbrella.co.uk are designed to support flexible workers in maximising their income potential, without the complexity that comes with running your own business.”
Torsten Bell, chief executive of the Resolution Foundation said that wage stagnation was “almost completely unprecedented.”
“Nobody who's alive and working in the British economy today has ever seen anything like this. This is definitely not what normal looks like. This is what failure looks like," he added.
Flexible working arrangements such as those facilitated by Umbrella.co.uk give some workers the opportunity to increase their income and secure their financial future during the ongoing cost-of-living crisis.
Flexible working allows some individuals to increase the rate they charge for their labour, while also adapting their work schedule and, in some cases, opening up multiple income streams.
Umbrella companies, like Umbrella.co.uk, act as an intermediary between flexible workers and their end clients or recruitment agencies. They take care of administrative payroll duties, leaving workers free to concentrate on earning more money.
To learn more about the possibilities of working through an umbrella company, speak to a member of the team today. Call: 01625 544 460.