Millions of Brits taking on extra work because their wages no longer stretch to everyday essentials

We’re seeing this play out every week in mortgage applications. Two or three years ago, maybe a 2 in ten clients had a second income stream. Now it feels closer to half. That might be overtime, a second job, a small business, selling on eBay or Vinted, or second jobs with Uber or Amazon. It tells you normal wages are not keeping pace with real life. The frustration is that people are working more, but not always feeling the benefit. Extra tax, higher bills, rent, childcare and mortgage costs quickly eat into the reward. On thing I would say is that for anyone hoping to use a second income on a mortgage application, paperwork matters. Lenders are scrutinising this more closely. They want to see how long the income has been running, whether it is stable, and whether it can reasonably continue. Keep records organised from day one.

The rising costs of living and general household financial pressures are pushing more people to extra work or additional income streams- interestingly this is incurring additional tax to the Treasury coffers to support the rising government bill for some of the workshy and those on benefits who don't do the same. Hobbyist side hustles, such as those on the selling portals, can still fall into the tax trap which many people also don't realise. The UK have some of the longest working hours in Europe, the most expensive bills and the least rewards- this is what needs to change. Work should be rewarded but not at the expense and detriment to families and individuals' mental health and stress to make ends meet.

With millions of people not being able to afford the cost of living from their current job, this must be proof that hiking the minimum wage isn't the way to raise wages for the workforce, especially if you increase the jobs tax at the same time. Industry is competitive and valuable workers would see their wages rises without government interference. A sky high minimum wage only strangles growth and sees more people on benefits. Getting Britain back to work means a more dynamic work force, with market competition on wages and no employers national insurance.

We've seen a real uptick at TMC in clients with side hustles, second jobs, or new businesses alongside the day job. People trying to escape the 9-5, or spread their income across more than one source.
The mortgage market hasn't caught up.
A quarter of Brits now have a side hustle. £8.5 billion a month in additional UK income. But most of it won't count on a high street lender's affordability assessment. Their underwriting is built around predictable salaried employment.
That's where specialism comes in. Specialist lenders will treat multiple income streams and newer businesses properly. You just need to know they exist, and how to package the case.
Practical tip: keep clean records. Separate bank account, proper bookkeeping, self-assessment filed on time. The difference between income a lender will count and income they refuse to look at is, often, paperwork.
The way Brits earn has changed. The lending market needs to catch up.

A recent stat reveals Mississippi, the poorest US state, now has a higher GDP per head than the UK — a sobering snapshot of Britain's declining wealth. That 25% of Brits need a side hustle to survive speaks volumes; when the majority start one just to cover basic bills, it's no longer entrepreneurial spirit but economic survival. Standard wages have decoupled from the cost of living, creating a growing class of working poor where a 9-to-5 no longer guarantees stability. When benefits outpay work, something is deeply broken. Side hustles collectively generate £8.5bn monthly — impressive resilience, but really a patch over the gap left by inadequate wages. If you're navigating this, know you can earn up to £1,000 tax-free per year under HMRC's Trading Allowance before declaring anything. Above all, protect your energy — burnout is the hidden cost nobody warns you about.

One in four Brits now has a side hustle. Not because they're chasing dreams. Because their wages don't cover the basics. Let's be honest. It's survival, not ambition. This isn't a gig economy. It's a gap economy. £8.5 billion a month generated by people grafting on top of jobs that were supposed to be enough. Two thirds making £500 or less. We're calling it entrepreneurial spirit when it's a cost of living crisis playing out in people's evenings and weekends. If you're in that position, protect yourself. Your highest earning job should hold your tax code. Anything else defaults to basic rate and you could be overpaying without realising. Get an accountant. HMRC pulls data directly from eBay and Vinted now so flying under the radar isn't the option it once was. And if you're off sick from your main job, be careful. Continuing a similar side hustle could invalidate your sick pay, breach your contract and if you're claiming benefits, undisclosed income is benefit fraud.

" The cost of living crisis has pushed a lot of people to get creative so the news isn't surprising. However, it's actually exciting because it's forced many to discover they're far more entrepreneurial than they ever realised. Social media has completely levelled the playing field and made it easier than ever to monetise your skills as a side hustle. without massive overheads.

My advice would be to think of costs carefully, as lots of people undercharge because they don't yet see the value in what they're offering yet. Visibility is really important when building a business, but many side hustlers struggle to show up online enough when also working. If you don't show up and take the opportunitiy then someone else will, so make you sure you really commit to putting yourself out there. My final tip is to just start, you don't need big investments, often it's just your phone!

The TUC says 22 million working days were lost to stress last year, yet one in four Brits now has a side hustle just to keep up with everyday life. That should ring alarm bells about the death of downtime in modern Britain. Side hustles used to be about extra holidays or pursuing a passion project, but for millions, they now fund food bills, rent and heating, turning evenings and weekends into a second shift rather than recovery time. I know someone working factory shifts and a Saturday supermarket job, terrified that automation will replace her in both roles. Yet both roles are repetitive work that barely leaves time to feel human outside of earning money. There was a time when people chose hustle culture to chase success, but now even people who simply want a stable life and time with family are dragged into it just to stay afloat. The real danger is that as AI and automation advance, humans are increasingly being pushed to live more like machines long before the machines even arrive

The rise of side hustles is not just a story about ambition; it is a warning sign that wages are not stretching far enough. When people are taking on extra work to cover bills, food and everyday costs, that tells us the economy may look better on paper than it feels in real life.

For many households, the second income is not funding luxuries. It is filling the gap left by higher rent, mortgages, energy, insurance and food prices. That creates a tired economy, where people are working more but not necessarily feeling wealthier.

My advice is to treat a side hustle like a small business from day one. Track income, costs, tax, platform fees and time spent. Selling on Vinted or eBay can help, but people need to know whether they are genuinely making money or just converting old belongings into short-term cash.

Side hustles can be powerful, but they should build options, not become the only way someone survives.