New research has shown that the price tag of returning to work can be up to £186, while new employees can face further costs of up to £1,057 out of their first pay packet according to a report from leading employment support provider, Reed in Partnership.
The 2018 report entitled ‘Too poor to work‘ has highlighted the growing problem caused by rapidly rising travel and childcare costs for long-term unemployed people trying to get back into work. The process of finding a job is likely to come with a £167 price tag for someone who has been out of work for some time, rising to £186 in London.
Once in a job, someone working outside the capital may face costs of £223 during their first month – including lunch, travel and new clothing. In London, someone long-term unemployed returning to work is likely to face costs of around £342 in their first month. If unsubsidised childcare is included this can rise to £756 outside the capital and £1,057 in London.
When Reed in Partnership last published a report looking at the cost of returning to work in March 2016, headline inflation was just 0.8%. Yet for the remainder of that year and throughout 2017, UK citizens experienced a sizeable increase in the cost of living, with inflation almost reaching 3% by the Autumn of 2017. Since 2016, the price of a litre of petrol has increased by 17.8%, while childcare costs are up by around 7%.
Case studies of people Reed in Partnership has helped back into work with financial support are available here.