7.34 million people earn income from more than one job

27 November 2024

The cost of living crisis and Inflationary pressures have affected everyone in recent times, and although the rate of inflation has reduced recently, but it is still above Bank of England annual forecasts.

According to the 2024 Pepper Money Specialist Lending Study, 14% of people say they earn income from more than one job due to the cost-of-living crisis, which equates to 7.34 million based on the ONS projection for the UK adult population of 52.4 million. This is up from 5.77m (11%) in the last study.

The research found this more prevalent amongst younger people, with 25% of 18-24 year-olds and 22% of 25-34 year-olds saying they earn income from more than one job because of the cost-of-living crisis. This compares to 13% of 35-44 year-olds and 8% of 45-54 year-olds.

The 2024 Pepper Money Specialist Lending Study is available to download now at https://www.pepper.money/file/Specialist-Lending-Study-2024.pdf

Rob Barnard, Relationship Director at Pepper Money, said: “More people are earning income from more than one employer, with multiple sources of income helping them meet the rising cost of living. This is especially the case for younger people, who may also be striving to save a deposit to buy their first home.

“For brokers, the best chance of helping these hopeful homeowners onto the ladder is by working with a lender that fully considers multiple sources of earned income can help them achieve the mortgage they deserve.”

Andrew Montlake, Managing Director from Coreco, says: “We’re seeing a growing number of clients who earn income from multiple sources, or variable income that includes bonuses and overtime. When you consider the average UK homebuyer is required to pay 10.6 times the average annual salary to afford the average home, it is often imperative to take all income sources into account when looking at mortgage options. Furthermore, recent increases in wages have continued to have been significantly outpaced by the growth in house prices over the last year.

“A lender like Pepper Money that takes a hands-on approach to assessing this income can help to maximise how much is used in an affordability calculation, and brokers who are familiar with lenders that can offer this type of approach will have an advantage.”