A significant share of UK workers are not planning any steps to improve their finances despite upcoming wage increases, according to new research.
The UK National Living Wage is set to rise by 4.1 per cent to £12.71 per hour from April 2026, delivering an estimated £900 annual boost for full-time workers. The increase for younger workers aged 18 to 20 will be even steeper, rising by 8.5 per cent to £10.85 per hour as part of a wider move towards a single adult rate.
However, a survey commissioned by PayCaptain suggests many households are not translating higher wages into active financial planning.
The research found that 29 per cent of respondents said they have no planned action to improve their financial situation in the coming year, despite ongoing cost pressures.
Where respondents intended to act, the most common approach was to tighten day-to-day spending. Nearly a third (29 per cent) said they planned to review outgoings and cut unnecessary expenses, reflecting a widespread focus on cost control rather than longer-term financial restructuring.
The survey also found that behavioural changes vary by age, with older respondents more likely to take steps to reduce expenditure.
The findings come against a backdrop of continued pressure on household budgets, with inflation and living costs still shaping financial behaviour even as nominal wages rise.
Economists have long warned that real wage gains can be offset by persistent price growth, meaning households often feel limited benefit from headline pay increases.
The results suggest that, despite policy efforts to boost earnings at the lower end of the labour market, a large proportion of workers remain cautious or disengaged when it comes to proactive financial planning.
Simon Bocca, founder and CEO at PayCaptain, said: “Our research shows a clear cost‑cutting response pattern, highlighting how people are responding defensively rather than offensively, despite many feeling stressed by their current financial situation. This in itself suggests a sense of constrained flexibility.
“Looking at sector highlights, this combination (high stress + defensive coping) is especially pronounced in the retail sector, with retail also showing one of the strongest cost‑cutting signals. Similarly, hospitality and events management also showed high expense‑cutting behaviour over job‑switching.
“These insights show that stress is being managed defensively, suggesting limited perceived mobility or bargaining power in these types of roles – many of which include more variable income, project‑based, or demand‑sensitive positions.”
, Anna Buckle – director of operations and impact at PayCaptain – added: “Explicit intent for an imminent job change was most likely amongst those in the second highest salary band analysed (£60-69,999) at 29%, and planning a pay rise was highest for the top salary band analysed (£70k+) at 28% – both figures significantly above average across all respondents.
Anna added: “The top three sectors most likely to change jobs this year in order to improve their financial situation included energy and utilities (37%), charity and volunteer work (33%), and information technology (30%). The sectors who had not considered this method included law enforcement and security, and marketing advertising and PR.
“The top three sectors most likely to ask their employer (or clients) for a pay rise this year included accountancy, banking and finance, creative arts and design, and information technology (IT) – at 40%, 33%, and 28% respectively. The sectors who had not considered this method included law enforcement and security, media and internet, social care, and transport and logistics”
Simon added: “A workforce that feels supported with money is healthier, more engaged and more loyal. By investing in payroll-linked financial wellbeing, businesses not only protect their teams but also strengthen their own performance. Supporting financial resilience is supporting mental health – and that’s good for everyone.”
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