Spring Statement 2025: Supporting your low-income staff through the cuts
With the Spring Statement bringing major challenges to low-income workers, we're exploring what it means for teams and how responsible employers like you can support staff wellbeing
The latest welfare cuts announced in the UK Spring Statement are set to hit low-income employees hard. With reductions to Universal Credit and Personal Independence Payment (PIP), many workers who rely on this support will likely feel the strain.
When employees in your teams are facing a shaky financial future, stepping in to offer them support is essential. But this can be tricky when balancing that support with limited resources.
The good news is that there are many meaningful ways to offer your employees the kind of support that makes a real difference.
First off, let’s look at what these changes mean for the wellbeing of low-income employees.
Financial wellbeing
These cuts will mean tougher choices and added financial stress for those already balancing tight budgets, pushing them closer to the poverty line and making it harder to afford necessities like housing, food and utilities.
The government's impact assessment shows just how serious these cuts could be, with 3.2 million families facing an average loss of £1,720 per year by 2029/30.
Mental health
The financial strain caused by these cuts won't just make it more difficult to get by – it will also take a serious toll on mental health. As low-income workers struggle to cope, anxiety, depression and stress are all set to rise.
The Mental Health Foundation has warned that these cuts could worsen health outcomes, with many facing greater emotional and psychological strain.
How employers can help
There are lots of measures you can take to make a difference, no matter what resources are at your disposal. From easing financial pressure to offering mental health support when it's needed most, here are some high-impact initiatives that offer effective support.
- Fair wages: Make sure your people are paid a fair wage that meets or exceeds the living wage. This will help to reduce financial stress and boost overall wellbeing
- Financial assistance programs: Offering financial assistance programs like emergency funds or interest-free loans can make a huge difference when it comes to covering unexpected costs and providing peace of mind
- Benefits and perks: Provide comprehensive benefits packages that help to build their financial foundation. This could include health insurance, retirement plans and other perks like retail discounts
- Flexible work arrangements:Where possible, implementing flexible working hours or remote work options can help employees balance both their work lives and personal responsibilities
- Professional development: Invest in training and development programs to help employees advance their careers and increase their earning potential
- Mental health support: Mental health resources such as an Employee Assistance Programme (EAP), counselling services, stress management workshops and wellness programmes can help employees manage the added pressure and give them a much-needed safety net during challenging times
- Childcare support: Provide childcare assistance or subsidies to help employees manage the often-significant costs of childcare
- Regular check-ins: Financial stress can be isolating. Carry out regular check-ins with employees to talk workload, stress levels and overall wellbeing. This lets employees know you’ve got their backs through challenging times
By putting these strategies in place, employers can create a supportive and compassionate environment that helps low-income workers thrive – despite the hardships posed by the welfare cuts.
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