The ongoing cost-of-living crisis and persistent inflationary pressures continue to affect millions across the UK.

While inflation has slowed in recent months, it remains above the Bank of England’s annual forecasts, straining household finances nationwide.

The 2024 Pepper Money Specialist Lending Study has revealed that 14% of UK adults now rely on income from more than one job to manage their expenses. This figure translates to approximately 7.34 million people, based on the Office for National Statistics’ estimate of the UK adult population at 52.4 million.

The findings represent a notable increase from the previous study, where 11% (or 5.77 million people) reported earning from multiple jobs.

YOUNGER COHORTS

The study highlights a pronounced impact on younger generations. Among those aged 18-24, 25% reported having more than one job due to the cost-of-living crisis, with 22% of 25-34 year-olds also reporting the same. In contrast, the numbers decline with age: 13% of 35-44 year-olds and just 8% of 45-54 year-olds report holding multiple jobs for financial reasons.

These findings underline the significant challenges faced by many households as they navigate an uncertain economic landscape, where inflationary pressures continue to outpace wage growth for many.

“For brokers, the best chance of helping these hopeful homeowners onto the ladder is by working with a lender that fully considers multiple sources of earned income”

Rob Barnard, relationship director at Pepper Money, said: “More people are earning income from more than one employer, with multiple sources of income helping them meet the rising cost of living. This is especially the case for younger people, who may also be striving to save a deposit to buy their first home.

“For brokers, the best chance of helping these hopeful homeowners onto the ladder is by working with a lender that fully considers multiple sources of earned income [which] can help them achieve the mortgage they deserve.”

“recent increases in wages have continued to have been significantly outpaced by the growth in house prices over the last year”

Andrew Montlake, managing director from Coreco, added: “We’re seeing a growing number of clients who earn income from multiple sources, or variable income that includes bonuses and overtime.

“When you consider the average UK homebuyer is required to pay 10.6 times the average annual salary to afford the average home, it is often imperative to take all income sources into account when looking at mortgage options. Furthermore, recent increases in wages have continued to have been significantly outpaced by the growth in house prices over the last year.

“A lender like Pepper Money that takes a hands-on approach to assessing this income can help to maximise how much is used in an affordability calculation, and brokers who are familiar with lenders that can offer this type of approach will have an advantage.”