Summer can be an expensive time for employees. For working parents, the long break means higher living costs. Summer childcare, holiday clubs and extra activities add up quickly. This is especially true when free school meals stop during the holidays. For others, travel, days out and social plans can strain the budget.
These seasonal pressures come on top of an already high cost of living. Food, fuel and energy bills remain high. Many employees are already living payday to payday. Research shows that half of UK adults overspent during the summer because of social pressure and fear of missing out. That spending often leads to borrowing or dipping into savings.
The result? Summer becomes a stressful time for many households. Money worries affect wellbeing, focus and attendance at work.
This is where the employer can make a real difference. Payroll is not just a tool to pay wages. It can also be a powerful way to support financial wellbeing. Through salary-linked savings, budgeting tools and early access to earned pay, businesses can offer practical help when it’s needed most.
Supporting financial wellbeing during the summer isn’t just good for employees - it helps the business too. Less stress. Better retention. More focus at work.
Understanding the summer cost of living squeeze on employees
Summer can put a serious strain on household budgets. For many families, it’s the most expensive time of year. The combination of school holidays, travel and social plans creates extra pressure on already stretched finances.
Recent data from Action for Children found that 36% of parents worried about providing three meals a day for their children. And 61% of parents struggled with pressure to spend more than they could afford over the summer holidays.
One of the biggest challenges is summer holiday childcare. With schools closed for six weeks, working parents often need to pay for summer childcare clubs or paid carers. These costs can easily run into hundreds of pounds.
Then there’s the average cost of the summer holiday. Whether it’s a trip abroad or a UK staycation, travel, accommodation and activities quickly add up. For those staying home, the average cost of summer holiday activities - from theme parks to soft play - can still take a chunk out of the summer budget.
Social pressure also plays a part. Sunny weather often brings more invitations to BBQs, pub beer gardens and family events. These social plans can be enjoyable, but the cost of eating out, buying drinks or even hosting can build up fast.
Put together, these pressures create a summer cost of living spike. Without support, employees may find themselves borrowing or falling behind on bills just to get through the season.
See how payroll can help ease summer cost of living pressure
Payroll-based solutions to reduce summer budget pressures
Building summer savings through payroll and budgeting tools
PayCaptain offers several payroll features that support better financial planning. These are especially helpful when summer expenses start to build up.
Payroll savings
- Employees can save directly from their wages before the money reaches their bank account
- There’s no need for a separate savings app or account
- It’s automatic and easy to maintain — helping to build a consistent savings habit
- Ideal for employees who want to save gradually for big events like summer holidays or childcare
Savings Pots
- Employees can split their savings into named pots for different goals
- Popular options include summer childcare, travel, back-to-school costs or an emergency fund
- Each pot is easy to manage and track within the PayCaptain app
- This helps employees stay focused on their goals and avoid dipping into savings meant for other things
SmartPay
- SmartPay uses behavioural insights to prompt better money habits after payday
- It might ask employees if they’d like to round up a purchase to add extra to a savings pot
- Employees can set a goal in September to start saving for next year’s summer holiday
- These subtle nudges encourage small actions that build up over time
Together, these tools help employees take control of their summer budget - without needing to make big changes all at once.
Using salary advances to manage unexpected summer costs
Summer often brings unexpected costs. A broken fridge during a heatwave. A car that won’t start the day before a family trip. Last-minute summer childcare when plans fall through. These can put pressure on employees who are already managing tight summer budgets.
Offering salary advances through payroll gives employees a way to handle short-term expenses without turning to high-interest loans or credit cards.
PayCaptain makes this easy and safe:
• Emergency cash advances
- Employees can request access to part of their earned wages if something urgent comes up
- This avoids the need for borrowing and helps employees stay on top of bills
• Weekly advances
- PayCaptain also offers a regular advance of up to £50
- This is paid into the employee’s bank account every Monday morning
- It can be a helpful top-up for families facing higher summer spending on childcare or food
• Simple and safe process
- Funds come from PayCaptain’s payroll funding account - protecting the employer’s cashflow
- The advance is automatically deducted from the employee’s net pay on payday
- There’s no interest or fees for employer or employee
This gives employees peace of mind. Salary advances help them manage the ups and downs of the summer cost of living more easily.
Streamlining expense reimbursements to support summer cashflow
For employees who pay upfront for work-related costs - such as travel, fuel or client expenses - waiting weeks for reimbursement can cause cashflow problems, especially in the summer when budgets are tighter.
A fast and reliable expense process helps reduce this pressure. PayCaptain offers flexible payments using Faster Payments, which means employees are reimbursed quickly, usually on the same day.
• No delays
- Reimbursements are sent direct to the employee’s bank account via Faster Payments
- There’s no waiting until the next payroll cycle
• Fee-free and seamless
- Employees receive the full amount with no fees deducted
- Payments are managed directly through PayCaptain, keeping everything in one place
• Improved cashflow
- A faster process means employees don’t have to cover large expenses for long
- This can ease stress and prevent borrowing
• Streamlined digital tools
- Integrated payroll and expense systems reduce admin for payroll teams
- Digital tools allow quick approval and tracking - no paper forms or long waits
By keeping processes efficient, the business supports employee wellbeing and repays expenses quickly. It’s a small change that makes a big difference during the summer squeeze.
Offering employee discount programmes to cut summer holiday and childcare costs
Employee discount schemes can help reduce the cost of summer essentials. These programmes offer savings on things like groceries, travel, leisure activities and childcare. These are all areas where costs can rise during the summer holidays.
With advanced payroll software, businesses can give employees access to discounts and cashback deals via trusted partners. These are usually simple to use, with discounts applied through online portals, prepaid cards or in-store vouchers.
Some schemes focus on major retailers and supermarkets, which can help ease food bills over the summer. Others include travel companies, theme parks or holiday clubs - offering support with summer childcare and entertainment.
Discount programmes can be managed as part of a wider payroll or employee benefits system. That means less admin and a smoother process for everyone.
Used well, they offer a practical way to help employees make their summer budget go further, without any extra cost to the business.
Financial wellbeing resources to support mindful summer spending
Planning ahead can make a big difference when it comes to managing the summer budget. By offering access to budgeting tools and learning resources, employers can help employees feel more in control of their money.
Simple tools like budgeting planners, expense trackers and savings calculators can be shared through internal platforms. These help employees plan for extra costs such as summer holiday childcare, trips or back-to-school expenses.
Workshops or webinars on summer financial planning can also be valuable. These sessions might cover:
• how to budget for summer childcare and activities
• mindful spending during the holidays
• how to plan ahead for next summer
PayCaptain supports employers in signposting employees to trusted services. This includes free tools from MoneyHelper, such as a budget planner or guidance on saving and borrowing
Employees over 50 can also book a free Pension Wise appointment. All employees can check to see if they’re eligible for financial support with PayCaptain’s benefits entitlement checker.
By encouraging use of these resources, the business supports employees to feel more confident and prepared. This helps reduce the stress that often builds up over the summer months.
How employers can offer extra support to ease summer cost of living pressure
Support measures are only effective if employees know they exist. That’s why clear, consistent communication is key, especially in the lead-up to summer, when financial pressures start to build.
Employers should make sure staff understand what help is available, how to access it and who to speak to. This could include:
• short toolbox talks or team briefings to explain support options
• messages on online payslips or payroll portals
• posters or leaflets in shared spaces like staff rooms or kitchens
• an open-door policy to encourage conversations about financial concerns
• Equip your HR Team with a Money First Aider Certification, via PayCaptain
Managers play a vital role in this. When leaders are open and approachable, employees are more likely to ask for help early - before problems escalate.
Creating space for honest conversations about money, without judgement, helps build trust and reduces stigma. It also makes it easier for the business to respond to changing needs and offer the right kind of support at the right time.
Flexible work arrangements to help with summer childcare and costs
Offering flexible work options can make a big difference during the summer holidays. When schools are closed, balancing work and summer holiday childcare becomes harder.
Flexible hours, remote work or compressed weeks can help employees manage childcare without needing to rely on expensive summer camps or paid carers. This support doesn’t cost the business, but can make life much easier for working parents.
Remote work can also reduce commuting costs. It gives a welcome saving during the summer cost of living spike. Less time on the road or train means more money stays in employees’ pockets.
Where possible, allowing flexibility shows trust and support. It helps employees feel valued, reduces stress and often leads to better productivity and focus.
Whether formal or informal, flexible work arrangements are a practical way to ease pressure during summer, especially when combined with other payroll-based support.
Wellbeing initiatives to support summer cost of living and reduce employee stress
Summer can be one of the most stressful times of year for employees - especially those balancing work, summer holiday childcare and rising costs. That’s why broader wellbeing support matters just as much as financial help.
Wellbeing initiatives that focus on stress management, mental health and work-life balance can help employees stay healthy and engaged. Employers might consider:
• Access to employee assistance programmes (EAPs)
These offer confidential support on issues like stress, anxiety, money worries or family concerns
• Wellbeing days or mental health check-ins
Even small gestures can help staff feel seen and supported
• Workshops on managing stress or improving sleep
These can be hosted in person or online, making them accessible to all employees
• Encouraging employees to use their full holiday allowance
Taking time off helps reduce burnout, boosts mood and improves focus on return
• Linking wellbeing to long-term financial health
Helping employees plan ahead. Whether through pension support, savings tools or debt advice, this helps build confidence and reduces future stress
Wellbeing isn’t just a ‘nice to have.’ It supports performance, retention and overall workplace morale. Investing in people’s wellbeing during the summer months is a simple step that pays back long after the holidays are over.
Final thoughts from PayCaptain
Summer should be a time to recharge - not a source of financial stress. But for many employees, rising costs, summer childcare challenges and social pressure can make it a difficult season to manage.
Employers have a real opportunity to help. By using payroll tools to support budgeting, savings and access to pay, businesses can ease short-term pressure and build long-term financial resilience.
Payroll can do much more than just process payments. It should give people more control, more choice and more confidence in their finances.
Small steps, like salary advances, savings pots or simple financial education, can make a big difference. When employees feel supported, everyone benefits.
