Addressing in-work poverty
In-work poverty happens when people have jobs but still do not earn enough to meet basic living costs.
This can happen when:
- employers pay low wages that do not cover basic living costs
- employers offer too few hours or contracts are insecure
- living costs rise, especially for housing, childcare and transport
- workplaces offer limited training or promotion opportunities
- households rely on one income or someone has caring responsibilities that reduce working time
How addressing in-work poverty helps businesses
In-work poverty is a business issue and a social issue. When your workers struggle financially, it can lead to stress, poor wellbeing and lower performance.
This can result in:
- more absences
- higher staff turnover
- difficulty attracting and keeping talent
- reputational damage
- lower productivity
When you support employees facing financial hardship, your organisation benefits too. You can:
- boost morale and stability by supporting financial and mental wellbeing
- reduce absences and increase productivity
- strengthen brand reputation and overall performance
- attract and retain talent in a competitive labour market
- offer fair pay and support to keep skilled, motivated staff
What employers can do
Employers can take practical steps to reduce in-work poverty.
Pay the real Living Wage and Living Hours
Realistic pay and stable, predictable hours can help your workers plan. Find out more about the real Living Wage and Living Hours.
Offer financial support
You could offer targeted financial support, such as hardship funds or affordable credit.
Have clear progression routes
Build inclusive career paths that help lower-paid workers grow and progress.
Improve job quality
You should offer secure contracts, flexible working options and support for workers with caring responsibilities. These steps help people balance work with other parts of life, leading to better wellbeing, stronger engagement and a more stable workforce.
Combatting in-work poverty is not just the right thing to do. It can also benefit both individuals and businesses, helping to create a fairer world driven by fairer businesses.
Find out more
Find out about challenging poverty in Scotland on livingwage.org.
Find advice on tackling in-work poverty through Business in the Community.
You can also get advice on navigating the Cost of Living Crisis through Business in the Community.
Read the UK Poverty 2025 report on jrf.org.uk.