London Daily

Focus on the big picture.
Thursday, Jul 31, 2025

Low-paid workers in UK share ownership schemes ‘£10k better off’

Low-paid workers in UK share ownership schemes ‘£10k better off’

Cross-party thinktank urges ministers to do more to encourage firms to offer option to employees
Low-income workers who are offered the chance to own shares in the companies they work for are typically £10,000 better off than workers on a similar salary, according to new analysis.

The “wealth premium” for workers included in ownership schemes, currently less than 5% of all workers, was particularly stark for younger workers, according to the report by the Social Market Foundation (SMF).

The report found that among the UK’s worst-paid workers – those in the bottom 25% – the employees who were included in their employer’s share ownership scheme were on average £10,900 wealthier than those without access to these schemes.

The cross-party thinktank said its findings underline why ministers should do more to encourage companies to offer share ownership schemes, which could be “an important tool for bolstering the financial resilience of UK households and giving workers a stake in the economy after the pandemic”. These schemes have also been found to boost company productivity too.

The group’s report found that among the poorest half of people aged between 25 and 34, those who were employee shareholders typically had a net wealth of £750 on average while those who were not had an estimated wealth of just £77.

For the poorest half of people aged between 35 and 44, the thinktank calculated an average net wealth of £450 for every employee not included in a share ownership scheme, while for those who do own shares in their employer their net wealth climbed to £8,835.

Scott Corfe, the research director at the SMF, said “too many people on low incomes struggle to build up savings” to weather tough times, but share ownership schemes give workers “an opportunity to build up their wealth and financial resilience”.

“That should be encouraged. Politicians who want a fairer, more resilient economy after the pandemic should lead a new drive to expand employee share ownership and give more people a stake,” he said.

“Giving more workers a chance to own a stake in the company they work for would be a good way to build back better after the pandemic,” Corfe added.

More than 14,000 companies in the UK offer an employee ownership plan including BT, Tesco, Whitbread, and Greggs under the government’s current tax rules, but the SMF has warned that barriers may be limiting their uptake.

For some companies the cost of administering the share plans, and the complex accounting rules for their use, can be a deterrent. For employees there is still a lack of awareness of the benefits of ownership, and the requirement to stay with the same employer for a minimum of five years to reap the full benefits.

The thinktank has proposed that the government launch a new employee ownership commission to promote share plans, which could include setting out new rules requiring companies to publish more information about employee share plan use.
Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×