How employers can help employees worry less about money and debt
According to the latest research by the Office for National Statistics, 77% of people over the age of 16 feel “very or somewhat worried about the rising cost of living.”
Meanwhile, research by financial wellbeing and retirement specialist WEALTH at Work (WAW) reveals that nearly half (47%) of 2,000 UK adults surveyed say financial worries affect their lives, with more than one-quarter (26%) saying it makes them feel depressed and anxious.
WAW says employers have a major role to play in helping to support and educate employees in dealing with money problems, or pointing them to where they can get advice. Its research, looking at the impact of financial worries on people lives, was carried out by Opinium in April 2022.
As well as 47% saying their lives were affected by financial worries and 26% saying it makes them feel depressed and anxious, nearly one-fifth (17%) admit they struggled to sleep because of money worries, while 22% of those aged 18-34 say the same.
Jonathan Watts-Lay, Director, WEALTH at work, says: “Financial education and guidance delivered in the workplace is key in providing this much-needed support and many employers now offer this as part of their overall wellbeing objective.
“This could be provided by workshops or even one-to-one coaching sessions – digital tools and helplines can also be a great source of support. As our research shows, doing nothing really isn’t an option.”
The Wealth at Work survey also revealed that one in seven (14%) feel embarrassed about their financial worries, again affecting younger people more often. Nearly one-quarter (23%) of those aged 18-34 feel this way, compared with only 6% of those aged over 55.
One in 10 (10%) say financial worries mean they avoid seeing people, 9% admit it causes arguments with family and in relationships, and 7% believe it makes them less productive at work.
Not being able to pay basic living costs such as rent, energy bills and food is the biggest financial concern for UK adults (34%), with one-third (36%) saying that they are having to cut back on what they spend due to increases in the cost of living, which increases to 42% among those aged 35-54.
Other worries include not having savings for unexpected costs (29%), being in debt (23%), affording their current lifestyle (17%), not being able to provide financially for their family (16%), not being able to retire when they want to (15%) and rising interest rates (14%).
The survey found that more than four-fifths (88%) say they know the amount of money they spend on essentials (mortgage, rent, bills, food and energy) each month, and three-quarters (75%) how much they spend on travel and fuel monthly. More than half of UK adults (51%) saying that they already shop around for the best deals on household bills and insurance and a similar proportion (49%) say that they never buy anything they cannot afford.
Despite this, only just over one-third (38%) keep a budget and know what they can spend each month.
Watts-Lay says: “It is shocking that more than a quarter of UK adults feel depressed and anxious due to financial worries. As the cost of living crisis further drives the squeeze on household finances, it’s important for employees to understand that if they are struggling with money, it isn’t something to be ashamed of, but it is vital they face up to it and get the help they need.
“The first thing employees will need to do if they are concerned about money is to work out exactly what they have coming in and going out each month. While many people seem to know how much they spend on their bills, in reality not all of them keep an accurate budget showing what is coming in and going out. There are many budgeting tools available online to help with this such as MoneyHelper’s budget planner.”
He continues: “If employees are struggling to pay their bills, they could speak to Citizens Advice, which can help them to work out what benefits or grants they may be eligible for. For example, the government recently announced a new-one off payment of £650 to low-income households on means tested benefits such as Universal Credit.
“If employees are in debt to their energy supplier, many of them are offering grants to help, some are even offering grants to people who aren’t their customers. The government has also increased its energy bills discount due in October to £400, and it no longer has to be paid back,” he says.
“If employees are worrying about debt there are many debt charities out there such as StepChange and National Debtline.”
In partnership with WEALTH at work
WEALTH at work is a leading financial wellbeing and retirement specialist - helping those in the workplace to improve their financial future.
