UK inflation could hit 22%, how to help your employees during a cost of living crisis

Reported by the Office of National Statistics, 89% of UK households have an increase in their cost of living and with global inflation rates continuing to climb, most of us are feeling the pinch. According to ONS figures, the top three costs hitting wallets the hardest are soaring fuel prices, increased household energy bills, and at number one, the rising cost of food shopping. As reported by Sky News, food prices rose at their fastest rate since 2008 in August - up 9.3% after a 7% increase last month. Will food inflation hit the 15% mark as reported by IGD?

The emotional cost

Anxiety, stress and uncertainty caused by financial worries can have a knock-on effect on an individuals’ mental health and overall wellbeing. As reported by i News, around three quarters (77%) of adults in the UK say they are feeling worried about the rising costs of living, with half reporting they feel those worries nearly every day.

According to The Times, four in ten people have put food they would have usually bought back on the shelf for financial reasons which is a sign of the times that inflation has made us think and act differently.

What can employers do?

While salary bumps and cost-of-living stipends are not an option for all companies - especially those still recovering from the economic impact of the pandemic - enhanced benefits packages, subsidised gym memberships and season tickets for travel, along with access to discounts and preferred rates on services, can be a real help to employees.

With food costs the number one cause for concern, developing a workplace food strategy is another way employers can play their part.

‘Lunchflation’ and office working

In our Post-Pandemic Work Report 2022, we found that 59% of our clients have adopted a hybrid working model, with almost a third (29%) saying nearly all their workforce is back in the office. Coffee runs and sociable lunch breaks are one of the perks of being back in the office. 60% of our clients say food is important to the work environment - but the morning caffeine fix, lunch from the high street, and an extra afternoon treat all add up.

Exacerbating the problem is post-pandemic ‘lunchflation’: according to the Daily Mail, the average price of lunchtime favourites like wraps, sandwiches and salads had increased by up to 18% from the previous year in the US. In the UK, many supermarkets have increased the price of popular lunchtime meal deals.

Food perks in the workplace

Providing food at work is one way companies can help employees who are feeling the squeeze: meal allowances for team lunches, late-night workers, or catered meetings allow your co-workers to order freshly prepared food of their choice within a set budget, rather than paying themselves and having to be out of pocket until they can claim back their expenses.

This feature also cuts down admin time of finance teams, good for the business bottom line too. Outside of the workplace, an employee benefit like Plus for Work means time-pressed teammates can get unlimited free delivery on takeaways and grocery shops, too. When many people are cutting back on luxuries due to cost of living concerns, small treats at work can help to boost morale - think Friday happy hour, birthday cupcakes, or hump day pizzas.

Check-out your personal inflation rate

Much has been made about personal inflation and rightly so, as the cost of food, energy and gas has continued to rise in the UK. With more people wanting to find out how much their household bills have risen over the past year, understanding your own personal inflation has given greater visibility as to which areas are costing you more.

With an inflation calculator provided by ONS, you can estimate your own personal inflation rate based on household spending patterns. Get the breakdown on your household spends which cover food, transport, leisure and housing bills.

How to support these concerns / How-to take action

With various ways to help your employees during the cost of living crisis, you’ll need to find a solution that works for both your business and your team. How are companies tackling this issue? More and more employers are using food perks, such as Meal Allowances, to help their employees reduce what they spend on food each week, and foster a culture of belonging amongst their team.

If you’re not sure what Meal Allowances are or how Deliveroo for Work can help, we provide an easy way for companies to give their teams office lunches, catered meetings and remote-working treats. Employees can order from a wide selection of quality restaurant food, delivered to their desk.

As the next few months will be tough for employers and teams, offering your show of support will go a long way to help ease the burden of the cost of living on individuals.