Commenting on Tuesday’s labour market figures published by the ONS, which show real wages falling by 4.1 per cent (on CPI measure) as the cost of living crisis intensifies, TUC General Secretary Frances O’Grady said: “Everyone who works deserves financial security.
“But with the Bank of England predicting the worst decline in real pay for 100 years, energy bills soaring and a recession on the horizon, millions of working families are worried they won’t be able to keep their heads above water this winter.
“We need action from ministers now. They should cancel the increase to the energy price cap. And they must do far more to get pay rising – starting with boosting the minimum wage this autumn and giving public sector workers a decent pay rise.”
Zero-hours contracts
Commenting on the latest data on zero-hours contracts also published by the ONS yesterday, which show more than one million people are employed on these terms, Frances added: ““The government promised a high skill, high wage economy.
“But too many workers are stuck on insecure contracts that give them and their families no security. As the cost of living crisis escalates, the case for banning hated zero-hours contracts is stronger than ever.”
New survey finds young people are some of the most anxious when thinking about their financial security and futures, as country begins to emerge from lockdown
Rapper Nova Scotia The Truth – who spent award win on Zoom rather than at annual celebration – fronts new campaign to encourage people to think about what they want from their future
Bank calls on the public to consider their financial situation as research shows more than half have parked a key ‘life moment’ during lockdown
New research from Royal Bank of Scotland has found that more than half (56%) of 18–34-year-olds in Scotland put a ‘life moment’ (e.g. wedding, graduation, buying their first home) on hold during the last 12 months.
Of those with life moments planned, almost a third (31%) said ‘financial insecurity’ caused by the pandemic had affected these plans, with one in ten (10%) citing a loss of employment and 8% affected by their lack of financial knowledge.
More than a fifth (22%) of all 18-34-year-olds said they feel anxious about money troubles in a post-Covid world compared with less than one in ten (9%) of those aged 55+.
As the country takes the first steps towards re-opening, Royal Bank has committed to improving the nation’s financial capabilities by offering every person a free Financial Health Check, to reduce money anxieties and help them achieve their goals.
To encourage signups for the service and urge young people to think about their future, the bank has enlisted the support of rapper and DJ, Shaheeda Sinckler aka Nova Scotia The Truth, who was crowned Scottish Album of the Year winner 2020.
The 25-year-old rap artist, who lives in Edinburgh but had plans to buy a new home in Glasgow, has seen her life put on pause with live gigs postponed, missed family moments and adjusting to a virtual existence with college, career planning and even collecting her SAY Award from behind the screen, rather than on-stage at Edinburgh’s Summerhall.
Shaheeda has been commissioned by the bank to write and produce an exclusive new track about the implications of 2020 and making future dreams happen – it’s due for release later this year.
Despite the increased financial anxieties among young people, almost 2/5ths (39%) do believe the pandemic has made them better at financial planning and when asked about the things they are looking forward to once restrictions allow it, key sources of excitement for 18-34-year-olds in Scotland include:
· Going on holiday (74%)
· Date nights (50%)
· Attending a live gig (48%)
· A return to education (22%)
· Buying a house (20%)
Shaheeda Sinckler, Nova Scotia The Truth, said: “At the start of 2020, I planned to move back to Glasgow and focus on gigging but because of the pandemic, I’ve had to stay at home with my family. It’s not been the easiest year but I’m lucky I’ve been able to focus on creative projects and do my college work virtually, I know not everyone has been so fortunate.
“The pandemic has given us time to reflect on our lives and the way we structure them and for me, that involved streamlining my finances to make sure I’m setting myself up well for when life goes back to normal. If you’ve got a plan in place now and the right support, you can achieve your goals quicker.”
Malcolm Buchanan, Chair, Scotland Board, Royal Bank of Scotland, said: “The impact of the pandemic on people’s plans – and their financial situation – has been immense.
“Directly or indirectly, everyone has been touched by it. Through our conversations with our younger customers and colleagues, a group who are normally working towards their future plans and goals, it is clear that many dreams and life moments have been paused. This is understandable given the climate.
“Shaheeda’s story has shown that it has impacted everyone, whether in the public eye or not.
“It has been challenging and there is a long way to go but we’ve seen that some people have reappraised what they want from life, whether it is a new life goal or even plans to set up their own business in the future.
“Regardless of how long it takes for people to get back on their feet, we want to help give everyone the support and skills they need to help them make their dreams a reality and help them plan for the future.”
Royal Bank is making financial management easier by providing the following:
· Financial Health Check – A free 20-minute conversation with a senior advisor who provides guidance to make banking simpler, and tips for everyday spending or achieving future goals. This could include setting savings targets, advice on tracking monthly spending and creating budgets. Customers can choose to chat in a branch or over the phone. personal.rbs.co.uk/personal/financial-health-check.html
· Royal Bank of Scotland app – Customers using Royal Bank of Scotland’s award-winning app will now be able to easily see where their money is going with the new ‘spending’ tab which will show them how much they’re spending each month, helping them stay in control of their money.
· MoneySense – MoneySense provides parents and teachers with the tools to give young people the confidence to use money responsibly on their own. MoneySense is fully digital and downloadable, it can be delivered by teachers in schools. It’s the longest-running bank-led financial education programme for young people in the UK.
A new survey from Royal Bank of Scotland has found that a third (33%) of people in Scotland don’t feel financially secure or believe they have enough money to live comfortably and afford essential payments (e.g. groceries, utility bills, mortgage and rent payments) in the current Covid-19 climate.
Despite this, three in ten (29%) Scots surveyed admitted that they would be uncomfortable speaking to friends and family about their current financial status and three in ten (30%) said they have previously lied to make themselves seem more financially secure than they are.
Almost two-thirds (63%) of Scots surveyed also acknowledged that they would feel embarrassed to ask family or friends to borrow money, however, more worryingly, three in ten (29%) said they often and always feel depressed when they think about their current financial situation.
The research comes as Royal Bank of Scotland launches its new Financial Flex campaign that will encourage Scots – especially younger generations – to start talking more openly and honestly about their finances to combat growing worries around money. Through a Royal Bank Financial Health Check, anyone, whether a customer or not, can get free advice on how to manage their money better.
Psychotherapist Kelly Hearn, an accredited UK Council for Psychotherapy (UKCP) member, reviewed the findings. She said: “Financial anxiety is high and increasing in this pandemic, particularly among young adults.
“Money worries can lead to enormous shame and so are difficult to discuss. They cut straight to issues of self-worth and feelings of ‘not enough.’ Often people suffer in silence which only compounds the issue. A vicious cycle emerges where financial stress causes mental stress which affects physical health as well, particularly when coping mechanisms like binge drinking or eating are enacted.
“Financial anxieties affect most of us and yet are rarely discussed. It is time to address the taboo subject of money more openly as financial wellbeing is an important pillar of mental and physical health.”
The free financial health check service is available from Royal Bank. It is a review with a highly trained senior personal banker and is currently offered by video.
During the appointment, the senior banker will consider all areas of finances to help customers make the best decisions about what they feel is right for them. The review can also be completed by telephone if required.
