Economic challenges are evolving, but their impact remains significant. Rising costs are creating financial strain across all income levels, affecting both personal wellbeing and access to key life opportunities.
One hidden barrier employees face is proving their income. Outdated verification methods make it harder to access better financial products, resulting in missed opportunities, higher costs, or rejection – even for those who should qualify. This challenge takes two forms:
- Credit invisibility: Employees new to the country or workforce, with limited credit histories, struggle to provide evidence lenders need, making them “invisible” in the financial system.
- Income underestimation: Even middle- and high-income earners – often long-term employees or homeowners – face barriers due to incomplete or inaccurate assessments.
Recent Experian research highlights the scale of the problem:
- 10 per cent of UK employees struggle to verify income or employment, due to invisibility.
- 1 in 4 credit-seekers may have been blocked by income verification issues.
- A third of applicants walked away from credit offers due to uncompetitive terms caused by inaccurate validation.
Beyond these barriers, the process itself is cumbersome. According to analysis derived from Experian data testing, 85 per cent of employees find income verification burdensome, with many relying on manual methods. Unsurprisingly, 7 per cent prefer digital solutions, rising to 89 per cent for those over 45.
Fortunately, HR leaders and employers can make a difference. By connecting payroll to Experian’s Work Report™, employees can consent to securely share verified income or employment data digitally. As a result, they can gain better outcomes. And, with the average employee needing to share this information at least once a year, the benefits can be wide-reaching.
Work Report™ was designed with industry and consumers to intentionally address both credit invisibility and income underestimation, enabling fairer, faster outcomes for all. It is already benefiting millions of employees across 1m employers, and redefining how financial inclusion is achieved.
Want to know if you are already connected, or the impact you can have on your organisation through connecting? Contact our experts who will share a personalised view: datasharing@experian.co.uk.