FINANCES

Illustration of a young woman looking sad and holding a pink purse

Our survey shows that young women are still much worse off financially than young men, across a whole range of measures.

Image with stats that say 42% of young women told us that their financial situation has got worse over the last 12 months, compared to 27% of young men.

Over half (55%) of young women are ‘filled with dread’ when they think about their household finances, compared to 43% of young men.

Some groups of young women, particularly those with long-term physical and mental health conditions, trans young women and young women on benefits, are even more likely to be struggling financially.

Young women continue to be more exposed to the cost of living crisis than young men, because they earn less and have less of a financial buffer.

Graphical illustrations that says 77% of young women agree that the increased cost of living has made things financially difficult for them, compared to 62% of young men.

Despite being more affected by the cost of living crisis, young women are less likely to have had a pay rise in response to it than young men.

Only 18% of young women told us that their pay has increased as a result of the increased cost of living, compared to a quarter (25%) of young men.

This means young women are more likely to be going hungry and falling behind on bills.

Graphical illustration that says Almost 3 in 10 (28%) of young women have been unable to afford food or essential supplies in the last 12 months, compared to a fifth (20%) of young men.

10% of young women have used a food bank for the first time in the last 12 months. For young women on benefits, this goes up to over a quarter (26%).

Over a quarter of young women (26%) sometimes have to choose between food and heating.

Although too many young women are in dire financial situations, some young women seem to be feeling slightly better about the cost of living compared to last year – particularly those with children.

We would like to think this suggests that the impact of the cost of living crisis may have peaked. However, it could be that this has become a ‘new normal’ which young women have become accustomed to.

Debt and savings

Young women are much more likely to be forced into debt.

Graphical illustration that reads Over a third (36%) young women have taken on new or additional debt in the last 12 months, compared to just under 1 in 3 (28%) of young men.

And because they have less money in their pockets, they can’t save as much as their male peers.

graphical illustration that reads Over a third (37%) are not able to put a little cash aside each month to save, compared to less than 3 in 10 (28%) young men.

This has a knock-on effect on their future finances and living situations – for example, saving to move out of home, or own their own home, will be harder and take longer.

Futures on hold

Less able to save, more weighed down by debt, and with less financial freedom - it’s not surprising that large numbers of young women are feeling stuck and unable to move forward in life.

Young women are feeling much less hopeful than their male counterparts about the future.

Graphical illustration that reads almost a third (32%) of young women told us that their hopes for the future have got worse over the last twelve months, compared to 25% of young men.

They’re having to delay the big life moments such as moving out of home and having children.

  • 16% of young women have been unable to move out of their family home because of the increased cost of living, compared to just 10% of young men.
  • Almost 3 in 5 (59%) of young women agree that they will have to put off having children until they can afford to have them.

Large numbers of young women say they lack the financial freedom to move jobs. The cost of retraining, or not being sure if flexibility will be possible in a new role, all make moving riskier for young women.

  • Over a quarter (26%) of young women have stayed in a job they didn’t enjoy because they couldn’t afford to leave, compared to a fifth (20%) of young men.
  • Almost a fifth (19%) of young women have put off changing careers, compared to 15% of young men.

Enjoying life – a luxury too many young women can’t afford

We might think your 20s should be a time when you can have fun and enjoy life – this is very far from the reality for a lot of young women. Unsurprisingly, being harder up means young women are less able to live their lives the way they want to and do those things that make life feel a bit brighter.

Graphical illustration that reads 40% of young women have had to cut back on or stop doing things they enjoy in the last 12 months because they can no longer afford them, compared to 28% of young men.
  • Just under a quarter (24%) have been unable to spend as much time as they’d like with family, compared to 18% of young men.
  • A fifth (20%) of young women have been unable to take the time off they needed for their health or wellbeing, compared to 14% of young men.

The Government should:

  • Remove the lower age band in the National Living Wage, so that everyone receives the same rate.
  • Ensure that young women on benefits are supported to find work which fits their skills and aspirations, not just ‘any job’, with financial support while they transition into work.
  • Ensure a smooth journey from benefits to work, and the ability for people to return to the benefits they were on if a job doesn’t work out.
  • Provide pathways and information to support people from education into work, including through the new national jobs and careers service.
  • Provide flexible and affordable childcare, with adequate funding to ensure providers can deliver the ‘free’ entitlements.
  • Address the underlying causes of the gap in earnings between women and men, through requiring more robust action from employers to tackle pay gaps, making flexible working the default, and strengthening enforcement against discrimination in the workplace.
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