Earlier this week, I noticed a video doing the rounds on social media calling out a well-known high street retailer for the cost of some of its specialist Christmas food items. In particular, its creator focused on some main courses that exceeded £100 purely for meat items, questioning how affordable this would be for the majority of families.
While this is undoubtedly an extreme example, it does serve to highlight the pinch being felt by many as we head towards the festive period and the financial pressures this brings. While retailers promote their premium ranges and specialist festive products, the reality for many is that rising prices, particularly on household essentials, increasingly leave them with much less disposable income for such luxuries.
Figures from the Office for National Statistics (ONS), published this week, for example, showed that wage growth in the private sector has slowed to its lowest rate in nearly four years.
Research published this week by The TEFL Academy, meanwhile, demonstrated how the cost of living has outstripped salary growth over the past 20 years, making financial independence more difficult to achieve. While the average annual graduate starting salary has increased by just over 50% from £21,000 in 2005 to £32,000 in 2025, over the same period the average UK rent has risen by 93%, the average monthly spend on food has increased by 79% and transport and fuel costs have also risen significantly. Indeed, just a couple of years ago, how many of us would have predicted that the price of mince would reach nearly £10 in some supermarkets?
Trying to make salaries stretch further each month, therefore, is a reality for many employees, particularly in the run up to the festive season.
As understanding and recognition of the link between physical, mental and financial wellbeing has increased, many employers have introduced, or enhanced, education and support to help employees understand and manage their money. But, if the cost of living continues to outpace salary growth, placing even greater pressure on individuals, what more can employers offer to help? After all, if employees understand the concepts of money management, but they reach a point where their monthly take-home pay no longer covers basic expenditure, this places them in an extremely difficult position.
But how can employers identify employees in this situation? Would staff who find themselves in this position feel comfortable reaching out to their employer? And, how far should employers go to help? Should they set boundaries around how far they are willing to assist staff or consider each case based on circumstance?
With no easy answers and prices showing little sign of slowing, I have a feeling these questions may continue to arise in the next few years.
Debbie Lovewell-Tuck
Editor
@DebbieLovewell
