September 27, 2023 - 401 views
New data released by Young Women’s Trust shows the stark reality of the cost of living crisis, as the charity warn that young women in Wales are struggling more than ever.
In the latest Costing our Futures report 63% of local young women said that they struggle to make their cash last to the end of the month, which increased from 59% in the previous year. As a result of they are also being forced into more debt (29%).
Furthermore, nearly half (45%) of young women in Wales said that their finances had got worse over the last 12 months, up from 40% in 2022.
At a time in life when young women should be thriving, the survey found that they are struggling and are filled with dread when they think about their finances (55%). In summary:
51% of young women described their current financial situation as uncomfortable.
A third (33%) of young women have been unable to afford food or essential supplies.
Almost a quarter (24%) of young women have fallen behind on rent or bills in the last 12 months.
The financial struggle is also meaning career aspirations are being put on the back burner with a third (35%) of young women saying that they are stuck in jobs they don’t enjoy. Some also said that they had no choice but to take a job that they didn’t want in the first place (21%).
The national picture also shows how the gulf between the financial stability of young women and young men is widening. Whilst the statistics are getting significantly worse for young women, they appear to be stabilising for young men.
Young women are so exposed to the cost of living crisis because they earn £5000 less than young men right from the start of working life. This would cover the average household’s food and energy bills for the entire year and by the age of 25, would add up to the average house deposit for a first-time buyer.
Amy lives in a remote town in Wales making her geographically isolated and even more exposed to the cost of living crisis.
She says: “I have been working to the point of burnout for a housing deposit, or enough money to rent short term closer to the city centre. But now, with the rise in interest rates and the Government once again failing to acknowledge the work of single independent people, I am left with no choice but to give up a third of my salary just to turn up to work. Because of this I’m also downsizing on my social life, not seeing friends as often because I can't justify the costs to travel to see them as often.
“It's just heart-breaking that all of my efforts to keep on top of work to support a life for myself are all for nothing as being able to get through winter with my mental health intact is so much more important than buying a house and seeing friends.”
Young Women’s Trust is calling for measures to address the underlying inequality that young women face in the world of work, through more robust pay gap reporting and action to tackle it, more support for young women to progress at work, and stronger measures to tackle discrimination. To help all young women who are struggling right now, Young Women’s Trust are calling for the Government to act by:
Going further in the forthcoming extension of the National Living Wage to younger age groups, so that 18 to 20 year olds receive it too.
Increasing the amount of support through the benefits system, through an Essentials Guarantee which makes sure the basic rate of Universal Credit is always enough to cover the costs of essentials.
Listening to the voices of young women as they create policies to respond to the cost of living crisis.
Claire Reindorp, Chief Executive at Young Women’s Trust said: “The cost of living crisis continues to affect us all, but young women are more likely than young men to be facing it without any sort of safety net, and their financial situation is going from bad to worse.
“If their average annual incomes were the same as young men, young women would be £5,000 better off. They could be paying their bills for the entire year and doing so much more with their lives. The income gap is caused by multiple factors including young women being in lower paid jobs, outright discrimination and a lack of access to the affordable childcare or flexible working they need.
“Young women are not getting equal chances to make a decent living for themselves and have fewer routes out of financial hardship. It’s vital that our politicians listen to young women and create tailored support to address this inequality – young women’s futures are at stake.”
The full report is available at www.youngwomenstrust.org.
