Cost of living: Consumers urged to take up workplace perks

An estimated 10 million employees have access to discount shopping schemes through work but may rarely use them, research suggests.

Nearly two in five employers (38%) told consultants LCP they offered retail discount perk schemes to their staff.

With the cost of living rising at its fastest rate for decades, LCP says more people should use these offers.

It suggested that some may consider the savings too small, but money off groceries could build up over time.

Heidi Allan, senior consultant at LCP, said: "Many workplaces offer employee discount schemes which give savings on everyday purchases with household name businesses, such as supermarkets, coffee shops, mobile phone companies and travel businesses.

"Yet in some cases workers may not be aware of the scheme or may think it is not relevant to them. The truth is that we are all going to face a squeeze on our budgets in the coming months and every penny we can save is going to help."

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Food prices have been rising and are set to rise further, and some employers offer schemes giving a small percentage discount on reloadable shopping cards, or loyalty points.

People may have to sign up to gift cards and vouchers and get into the habit of using them, but LCP suggests savings over time could be helpful to family finances.

Its survey suggested another 27% of employers were considering introducing such schemes in the next 12 months.

The government-backed Money and Pensions Service, which runs the MoneyHelper website, has encouraged employers to review their employee assistance plans. The schemes included can range from help with commuting costs to insurance, with the cost often taken out of pre-tax pay.

Maddy Alexander-Grout, chief executive of Southampton-based My VIP Rewards, said: "The sheer level of uncertainty is making consumers exceptionally cautious at present. Many businesses just aren't proactive enough with perks and right now, with the cost of living squeeze, the value they can provide to employees can make a real difference."