Workers 'opting for cash over benefits'

By Sarah Engle, Wed 21 May 2008 - Published in Banking

More and more workers are tending to prefer additional cash over other benefits from their employers as the credit crunch tightens, an expert has argued.

Peter Reilly, director of human resources research and consultancy at the Institute for Employment Studies, said that because of increasing financial pressures, some workers tend to prefer larger salaries over other benefits.

"People who are on low incomes do want the money because they need to pay their debts. And giving them gimmicks is neither here nor there," said Mr Reilly.

He added that those with mortgages are likely to be more worried about the financial situation and may also prefer to take any cash offerings.

Mr Reilly pointed out that it is not just the credit crunch that is leading to such a trend, but also higher levels of inflation across the country, making goods and services more expensive. And it is this that pushes people away from benefits and back towards cash.

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