Although employers cannot solve in-work poverty on their own, they can make work a more reliable route out of poverty. The most obvious role employers can play is to provide a liveable income that helps prevent people from falling into hardship in the first place. Inflation-beating wage increases will not be realistic for all employers, but there’s much more employers can do.

Pay a fair and liveable wage: Pay a wage that enables people to lead a dignified life and meet the real cost of living. This could entail paying the voluntary Real Living wage but also removing any barriers that prevent people from working enough hours to earn a decent living. Employers should also protect people on low incomes from one-sided flexibility and insecure working arrangements that may not suit their needs. To support fairness, employers should also be transparent about how they set pay and how people can secure a pay rise.  

Provide financial wellbeing support: This could be as simple as sign-posting relevant advice and guidance, but employers can also consider reviewing their benefits package to include perks that help incomes go further and protect people from unexpected financial shocks. Creating a safe place to talk about money worries is important too. Employers have a role to play in normalising conversations about money worries in the same way in which they’ve begun to do with things like mental health and the menopause. 

Support in-work progression: Too many people get stuck in low-paid roles through no fault of their own. Employers should ensure that everyone – particularly those in the lowest-paid roles – knows what they need to do to progress at work and invest in targeted training and development to support that progression.  Employers can also help people to maximise their earning potential by tackling cases of direct or indirect discrimination that can hold people back.