New survey shows a gender imbalance around financial worries

New research from the charity Young Women’s Trust has shown how money and work worries are blighting young women’s lives in London, with 34% saying that their financial situation has got worse over the last 12 months, compared to 27% of young men.

As the cost of living crisis continues, 30% of young women aged 18-30 have taken on new or additional debt in the last 12 months, compared to 28% of young men. Over a quarter (27%) of young women also said that they are in debt ‘all the time’.

Furthermore, Over half (52%) of young women are ‘filled with dread’ when they think about their household finances, compared to 43% of young men, and 10% have had to use a food bank for the very first time in the last 12 months.

At work, young women are feeling stuck and far less supported than young men to pursue their ambitions and get where they want to be:

61% of young women said that they have the support they need to progress in their careers, compared to 64% of young men.
Over 2 in 5 (44%) of young women are worried about not having the support they need in their job, compared to 36% of young men.
A quarter (25%) of young women have stayed in a job they didn’t enjoy because they couldn’t afford to leave, compared to a fifth (20%) of young men.
58% of young women told us that they feel happy at work, compared to 63% of young men.
The survey also revealed how young women’s finances are leaving them with a bleak outlook on life in general:

35% said that have had to cut back on or stop doing things they enjoy in the last 12 months because they can no longer afford them, compared to 28% of young men.
15% of young women described their current mental health as ‘poor’ or ‘very poor’.
Almost a third (32%) of young women say that their hopes for the future have got worse over the last twelve months, compared to 25% of young men.
Over a quarter (27%) of young women say that their hopes for the future have got worse over the last twelve months, compared to 25% of young men.
Sharron* from Enfield lost her job as an administrator in 2019, which has made the cost of living almost impossible. She said: “I went from approximately £35 to £40k a year to receiving my first Universal Credit payment of £70 a month that was supposed to cover basic necessities. I couldn’t eat properly, and I had to borrow money for sanitary towels. It was soul destroying, I couldn’t pay for the smallest things, that really starts to affect your pride and mental health. I had to beg friends, and I was constantly texting family for money to pay for my electricity, food or my oyster card so I could travel. I’m now working on long-term zero-hour contracts, and I’m still in debt. I’ve been able to pay off some of the debt and have payment plans in place for the longer-term debts. If I could get a permanent role, I would feel so much more financially secure.”

Claire Reindorp, Chief Executive at Young Women’s Trust, said: “There is a stark contrast in the way that young women and young men are living their lives – with young women carrying a much heavier burden of worry about money and jobs, and generally much more pessimistic about their futures. Young women are more likely to be in low paid and insecure work, taking on the lion’s share of caring responsibilities leaving them earning less through paid work. And despite this, they’re feeling less supported in the workplace and are less likely to know where to turn for financial help.

“We need to level the playing field, and the government’s proposals to increase the minimum wage to reflect the cost of living and improve job security can’t come soon enough for young women. But we need to go further than that – offering more support to young women to progress out of low-paid work, escape poverty and thrive.”

The survey is being released to highlight the need for more support from government and employers to address financial inequality. Targeted support to raise young women’s incomes is needed, including:

Ensuring the minimum wage genuinely covers the cost of living, and removing the lower age band so that 18-20 year olds receive the same as older workers.
Ensuring benefits always cover the essentials.
Tackling the gender pay gap, which sees young women being paid less than men right from the start of working life, and taking stronger action against employers who discriminate and have persistent pay gaps.