Record number hunt for second job as living costs bite

A RECORD number of Britons are looking for a second job, seeking to work more hours or find a new employer, a Bank of England survey has found.

More than a quarter of respondents said they were looking for additional or alternative ways to make ends meet, the highest level since the survey began in 2011. One in 10 said they are pushing their employer for a pay rise.

Andrew Bailey, the Bank of England’s Governor, repeatedly urged workers to show “restraint” with pay demands and asked companies to hold back price rises to eradicate persistent inflation.

Inflation is at 4pc, above the Bank’s 2pc target. About half of respondents to the Bank’s survey said they are cutting back spending to save more, while 56pc are shopping around for better deals.

High interest rates, the Bank’s main tool to battle inflation, are also painful for households. Two in five said Britain would be better off with lower borrowing costs, the highest share calling for a rate cut since the financial crisis. Only one in 10 believe an increase from the current level of 5.25pc would be beneficial for the nation, despite almost a quarter saying higher interest rates would help their personal finances.

The average person estimates prices rose by more than 6pc over the past year, but will increase by only 3pc over the next 12 months – the lowest expected rate since mid-2021.

Policymakers view expectations as an important and potentially self-fulfilling sign of what will happen next, as it affects workers’ pay demands and businesses’ price rises.

Separate data on Friday showed that company insolvencies surged by 17pc in February as banks “lose patience” and chase debts. High interest rates and low consumer spending pushed 2,102 businesses to register as insolvent last month, a jump of 73pc compared with pre-pandemic levels, according to data from HM Revenue & Customs.