In this cost of living crisis, good flexible work could be a gamechanger

By Dr Sarah Dauncey, Head of Partnerships and Practice, Timewise

The pressure that the cost of living crisis is putting on household incomes is inescapable. In ONS data from early September, 82% of adults reported being very or somewhat worried about rising costs of living. According to the New Economics Foundation, three-quarters of households will see the cost of living outstrip incomes by the autumn budget. And the economic fallout from the Chancellor’s ‘mini-budget’ on 23 September has intensified the problems facing households across the country.

Low-income families, who spend a greater proportion of their income on food and energy, are worst hit. In research from the Living Wage Foundation, 78% of low-paid workers said the cost of living crisis is the worst financial period they have ever faced. And as part-time workers are twice as likely as full-timers to be trapped in low pay, they are likely to be disproportionally affected.  

It’s crucial that employers do all they can to support their employees through the cost of living crisis, and raising pay in line with the Living Wage is a good starting point. And another measure that employers should take is to offer good quality flexible working for all employees, at all levels.

Good flexible working can help households manage rising costs

The problem, however, is not just that we don’t have enough flexible jobs, but also that we don’t have enough good quality ones. As our 2021 Flexible Jobs Index noted, only 1 in 4 jobs are advertised as flexible in any way. There are even fewer part-time jobs advertised (just 1 in 10), and they are clustered at the lowest-paid end of the scale, with very few higher-paid ones available.

This is a particular problem for parents, carers or those with health issues or other responsibilities, who simply can’t work full-time. Being able to find a quality part-time or flexible role can be a gamechanger, allowing them to get into (or back into, or progress in) the workplace and increase their household income. And the availability of good flexible jobs also has a positive impact on society as a whole. Evidence shows that flexible working can play a part in tackling social inequality, reducing child poverty, supporting social mobility, and increasing workplace diversity. This has long been the case, but is now more critical now than ever – when people are talking about choosing between heating and eating, it’s time to take action.

Here’s what needs to happen – now

Just as the impact of a lack of flexible working is a societal issue, the solutions cut across many different parts of society too. For example:

• Employers need to create and offer more good quality flexible roles, at all salary levels. This will not only help people who need flexible roles navigate the cost of living crisis, but will also help employers overcome the challenges they’re facing in terms of the recruitment and retention of employees.
  
  Crucially, flexible working arrangements shouldn’t be limited to desk-based employees. Flexible working can be achieved within and across all sectors, including those with high numbers of frontline and site-based roles. Our projects in construction and teaching have shown what’s possible, and we’re currently working in social care, early years provision and the creative industries to introduce flexibility into ‘hard-to-flex’, site-based roles.

• Intermediaries need to be supported to encourage employers to offer flexible working, and to help job seekers access it. We’ve been exploring this through our Fair Flexible Work for Scotland programme, at the request of the Scottish Government, with great success.
  
  We’re also collaborating with ReAct to empower Restart scheme providers’ employer services teams to have good quality conversations with local businesses about flexible working. This will unlock jobs and improve the employment outcomes of Restart participants.

• The government needs to get behind flexible working and legislate to make it a reality for all workers across the country. The much-awaited Employment Bill, which follows a commitment to encouraging flexible working in the 2019 Conservative Manifesto, was set to give employees a legal right to ask for flexible working from day one. However, not only is there a reluctance to deliver on this commitment, but the government has also indicated its scepticism towards remote and hybrid working through its policies for civil servants.
  
  The Department for Work and Pensions should provide improved employability support. They could use the considerable underspend from back to work programmes such as Restart to deliver more tailored programmes that support unemployed, low wage and economically inactive groups (such as older workers, disabled people and lone parents) to find and negotiate better flexible jobs, including part-time ones.
  
  Additionally, it would make sense to revisit the lessons learned from pre-Covid in-work progression trials, and invest in supporting employers to create and offer better quality flexible jobs. We’re currently finalising research that explores what’s holding employers back. It will provide insights into the socio-economic consequences and suggest practical solutions for employers and government – watch this space.

At the time of writing, the Chancellor has stated that he will tighten benefit rules for part-time workers to increase economic productivity, requiring them to work longer hours or take steps to increase their earnings. This is a retrograde step, which will keep people who need flexibility out of the workforce, pushing more into economic hardship.

Instead, we need to use flexible and part-time working to unlock the jobs market, which will support people through the cost of living crisis, as well as contributing to growth. This has long been true, but is now mission critical. Collaborative and coordinated action is urgently required.

Published October 2022