New analysis has shown that 1.4 million people face the ‘double jeopardy’ of working in severely insecure jobs while living in privately rented accommodation.
Analysis of the Office for National Statistics Labour Force Survey by the Work Foundation at Lancaster University showed that in 2023, a quarter of the 5.8 million workers living in the private rental sector were in severely insecure work – meaning they face a combination of insecure work conditions such as low or unpredictable pay and a lack of rights and protections
Researchers say that 20.9% of workers in severely insecure jobs live in private rental accommodation, compared with 14.5% of those in secure roles.
Private renters typically spend a higher percentage of their monthly earnings on housing. The ONS suggests private rents have risen by 15% since January 2022. The Work Foundation showed this is particularly challenging for severely insecure workers, who are on average £3,200 per year worse off than those in secure jobs.
Alice Martin, the Work Foundation’s head of research, said: “Workers in severely insecure employment – such as those on zero-hour contracts or in temporary work – are particularly vulnerable to the rising rents and lack of protections in the private rented sector.
“At the end of 2023, the ONS reported that almost half of renters were struggling to afford their rent, and the unpredictable shifts and pay that characterise insecure work can make this even more difficult to manage. Previous Work Foundation analysis has found that 49% of insecure workers couldn’t personally pay an unexpected bill of £300 if it was due within the next seven days.
“Facing uncertainty both at home and at work can also take a serious toll on people’s health and wellbeing – we can’t ignore this at a time when the level of economic inactivity due to ill health is reaching record levels.”
Black and Asian workers who are in severely insecure work are 2.2 times more likely to rely on the private rented sector for housing than their white counterparts, the research found. Among millennials in severely insecure work, 33.8% of workers aged 25-34 live in private rented accommodation, and 25.6% of workers aged 35-49.
“Relying on severely insecure work while privately renting can also be a barrier to home ownership. Unpredictable pay and a lack of contractual security will make it harder to save for a deposit and secure a mortgage – which means those who don’t have the Bank of Mum and Dad to fall back on will struggle to escape the high costs of renting,” Martin added.
Alongside private rental reform, the report recommends that the next government urgently bring forward a comprehensive Employment Bill to substantially reduce insecure work in the UK and support those in severely insecure work to better manage the risks of living in the private rental sector.
Paul Nowak, general secretary of the TUC, said: “Insecure work is an epidemic in the UK. This research lays bare the financial precarity of those in insecure work, who struggle to pay their rent each month and are particularly vulnerable to rent hikes.
“Insecure work, like zero hours contracts, hands almost total control over hours and earning power to managers – making it nearly impossible for workers to plan their budget.”
The report recommends introducing reforms to:
- Standardise employment status to ensure all workers have access to key rights and protections
- Make guaranteed minimum working hours the default of all employment contracts, with employees possessing a right to request otherwise
- Create a single enforcement body to oversee compliance with employment regulations, and improve resourcing for this activity
- Reform statutory sick pay by removing the earnings threshold, uprating the statutory amount and removing waiting days, and
- Make flexible working a day-one right, rather than a right to request.
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