How employers can support lower-wage workers

Employers who take proactive steps to help their people navigate financial strain will be best positioned to build a motivated, resilient workforce.

Making benefits accessible and inclusive is essential for creating equitable workplaces This is done by removing barriers to valuable employee benefits and ensuring that support is within reach for everyone, not only those at higher pay grades.

During Living Wage Week (10-16 November 2025), HR and reward professionals were able reflect on the financial pressures facing employees on lower incomes - and what employers were able to do to help.

According to analysis from the Living Wage Foundation, around 15.7% of jobs in the UK are classified as low-paid, meaning they fall below the Real Living Wage of £12.60 per hour across the UK and £13.85 in London.

While the National Living Wage rose to £12.21 per hour in April 2025 for workers aged 21 and over, this increase hasn’t fully offset the rising cost of living. Inflation continues to drive up everyday expenses - from energy and food to transport and rent - making it harder for employees to make ends meet.

For employers, this presents a dual challenge: how to support financial wellbeing without significantly increasing payroll costs. The answer for many lies in designing benefit strategies that make every pound of pay go further.

Supporting sustainable and affordable travel

Travel costs remain one of the biggest household expenses for UK employees. Through initiatives such as salary sacrifice cycle-to-work schemes, organisations can help reduce commuting costs while supporting sustainable living.

Programmes such as Cyclescheme allow employees to save up to 47% on the cost of a new bike and accessories, with employers also saving up to 15% on National Insurance Contributions. To ensure that these benefits are truly inclusive, IntoCyclescheme was launched to extend the advantages of the cycle-to-work model to employees on or around the National Minimum Wage.

It provides a way for lower-paid workers to access the same savings and wellbeing benefits, removing the affordability barriers that can often exclude them from traditional salary sacrifice schemes.

For those who need four wheels rather than two, Tusker offers employees access to brand-new, fully insured electric and hybrid vehicles through salary sacrifice – helping them save money, cut carbon emissions, and manage transport costs more sustainably.

Together, these schemes provide employers with practical ways to make sustainable travel both accessible and affordable for all employees, supporting financial wellbeing while advancing corporate sustainability goals. Making everyday essentials more affordable.

Easing everyday spending pressure

Access to affordable technology and household essentials can make a tangible difference to financial stability. Offering discounted purchasing schemes for home and tech products allows employees to spread the cost of necessary items, such as laptops, white goods, or smart devices.

For lower-paid employees, this kind of financial flexibility helps manage cash flow and provides access to tools that improve quality of life - whether that’s enabling hybrid work or supporting family needs.

Home & Tech Netscheme has been designed to be more inclusive and gives employees on National Minimum wage access to the latest home & tech products without upfront costs or credit checks.

Day-to-day costs can quickly erode disposable income. Cashback and discount platforms are becoming increasingly popular as employers look to help staff stretch their salaries further.

Cashback solutions like bYond or discounted gift card programmes offer employees the chance to earn cashback or access savings on essential retail, groceries, and leisure spending. It’s a simple, low-cost way for employers to provide ongoing financial value to their teams.

Protecting health and wellbeing

Financial stress often spills over into physical and mental health. By offering discounted gym memberships and wellbeing initiatives, employers can help mitigate stress and encourage positive lifestyle choices.

Access to platforms like MyGymDiscounts empowers employees to maintain their wellbeing affordably - a vital step toward reducing absence and promoting resilience.

Building a culture of care

Supporting lower-wage workers isn’t simply about offsetting the cost of living; it’s about building a culture of care and fairness.

Employees who feel valued and supported are more likely to stay, engage, and advocate for their employer. As Living Wage Week reminded us, a fair pay policy combined with inclusive, practical benefits can go a long way toward fostering loyalty and trust across the workforce.

A strategic opportunity for employers

Investing in financial wellbeing - particularly for lower-paid staff - is a strategic lever for retention, productivity, and employer brand.

By leveraging HMRC-approved salary sacrifice schemes, cashback programmes, and affordable wellbeing solutions, HR leaders can make a real and measurable difference without dramatically increasing pay costs.