The UK workforce is experiencing “significant psychological distress” as people face ongoing financial pressures, according to the 2024 State of Financial Wellbeing Index.
In the past three months, 47 percent of respondents experienced stress due to money worries, with 33 percent struggling to sleep, researchers said.
They also found that a fifth of employees worry about money daily, contributing to chronic stress.
The findings came as researchers analysed a survey of 2,000 people, conducted in May 2024, by Censuswide on behalf of employee app provider Wagestream.
Employers in the dark
Nearly three quarters (74 percent) of respondents said they had not told their employer about their money-related issues, indicating that employers could be in the dark about the impact of financial stress on their workforce.
This is despite the fact that 60 percent of people worry about money at least once a week and 21 percent worry every day.
More than half of respondents (54 percent) said their mental health has declined due to their money worries.
Two fifths of employees (40 percent) said they haven’t told their employer because they don’t want them to know they are struggling financially. Nearly a third (30 percent) feel ashamed about discussing their money worries, while a quarter said they were ‘brought up not to talk about money’.
Distrust and discrimination fears
Nearly a fifth of respondents (18 percent) won’t discuss their money worries with their employer because they don’t trust them, and 12 percent won’t tell their employer due to fear of discrimination.
Perhaps most worrying, the index found that 32 percent would not seek professional advice if their mental health was suffering due to their financial situation, while 23 percent are currently having difficulties making decisions about money.
The index also asked about people’s current financial situation. It showed that a quarter are currently behind on bills, 61 percent are currently in debt, excluding student loans and mortgages, more than a fifth (22 percent) have less than £100 in savings, and 40 percent have less than £1,000 in savings.
Emily Trant, chief impact officer at Wagestream, said: “Recent years have been catastrophic for people’s financial and mental health, and although inflation is on the decline, this data shows the fallout from the cost of living crisis is far from over.”
She said almost three quarters (74 percent) of workers haven’t told their employer about the issues they’re facing due to money worries, adding that separate research has suggested financial distress can impair people’s cognitive ability.
“These concerning findings show it’s in the interest of the employer to understand the symbiotic relationship between money and mental health, to open up the conversation about money, and introduce the appropriate financial wellbeing tools to support them.”
Angelina David, clinical psychologist and facilitator at Plumm, said: “The findings of the 2024 State of Financial Wellbeing Index indicate significant psychological distress linked to financial stress among Brits.
She said that key findings include that 21 percent worry about finances daily, contributing to chronic stress with symptoms like anxiety and cognitive decline. More than half experience financial-related stress, impairing mental health and decision-making. Furthermore, 33 percent report sleep disturbances and 54 percent observe worsening mental health due to financial worries.
“These data points all underscore the need for targeted interventions, such as financial wellbeing coaching, to alleviate financial stress and enhance mental health.”
