Credit, Collections & Insolvency News
Almost one in two UK adults (47%) are considering taking on an additional job or getting an alternative source of income on top of their main form of employment amid the rising cost of living, according to new research by Comparethemarket. The trend is most popular among young adults aged between 25 to 34, with over two-thirds (68%) saying they are considering setting up a side job.
Some of the most popular side jobs include being paid to take online surveys, selling items on second hand good sites, or making handmade goods. Others include cleaning services, tutoring, or hospitality work.
Side jobs have risen in popularity since the Covid-19 pandemic. Over a fifth (21%) took steps to boost their income when lockdowns and restrictions were implemented. However, the cost-of-living crisis has increased this trend drastically, with almost two-thirds (63%) looking for additional ways to earn money within the last year. Almost a fifth (19%) started within the last month alone.
Some of the main reasons behind people starting a side job within the last six months include wanting financial protection against future bill rises (28%) and needing additional money to provide for their family and children (23%). Only 12% wished to turn their hobby into a business.
On average, individuals make approximately £417 per month from their side job. However, in terms of being able to put this money directly towards savings, the average amount saved is £286 per month, the equivalent of £3,432 per year.
Individuals are instead having to prioritise putting the money towards everyday household expenditures, such as food (44%), energy bills (39%) and petrol (35%). Over a quarter (26%) are using this money to pay off debts that have built up due to the rising cost of living. There is also a large gender savings gap, with men saving on average £481, versus £173 for women. These savings figures are one explanation of why more women (59%) than men (34%) are considering a side job.
Financial concerns for the future suggest the number of people looking for a side job is set to accelerate. Eight in ten (81%) who don’t currently have a side job are considering one, as living costs are expected to rise further with the upcoming increase to the energy price cap in October.
Helen Phipps, director at Comparethemarket said “Millions of people in the UK are facing financial strain due to the rising cost of living, with our latest Household Financial Confidence Tracker revealing that nearly half (46%) of households with children at home struggled to pay their bills over the last month. As such, many more people are looking for additional jobs to cover their household expenses.”
“However, it is crucial people also look at where they could save money easily and simply. Comparing prices online for existing bills, such as insurance, is one of the best ways to check you are getting value for money. For motor and home insurance, a quick and easy way to find a great deal ahead of your renewal is to sign up to automated renewal quotes from Comparethemarket, which will automatically notify you that your policy is about to end and highlight any available deals.”
