Cost of Living Drives Surge in Workplace Financial Education and Support

With the cost of living continuing to bite, UK employers are taking meaningful steps to support staff who are struggling with money worries — an issue that is increasingly affecting workplace wellbeing and productivity.

New research conducted by financial wellbeing firm WEALTH at work in partnership with employee group the Reward & Employee Benefits Association reveals that 40% of employees believe financial stress is harming their work performance, while one in ten say it has directly led to increased sick days.

The study shows a high level of awareness about the challenges facing employees, with inflation (76%), childcare costs (73%), rising rents (64%) and high mortgage interest rates and energy bills (both 58%) all major stressors. Over half (53%) of employers expect the rising cost of living to drive further changes in their financial wellbeing strategies.

Tackling Financial Stress with Proactive Support

Employers are responding in a variety of ways. Nearly half have enhanced their financial wellbeing offerings, and over a third (35%) plan to increase investment in this area.

And there’s a notable shift towards education and guidance, with employers increasingly offering or planning to offer:

  • Independent financial education (47%)
  • One-to-one financial coaching (43%)
  • General financial advice (47%)
  • Retirement-specific advice (54%)
  • Pre-retirement planning support (60%)

These initiatives are aimed at equipping staff with the knowledge and confidence to make informed financial decisions and reduce stress caused by uncertainty or lack of understanding.

Encouraging Saving Through Workplace Benefits

Support for workplace savings schemes is also on the rise. Just 14% of employers currently offer savings through tax-free products such as a Workplace ISA, but it’s set to more than double, with 30% saying they intend to introduce such options in the future.

The research found that 42% of employees would choose to put spare money into savings — such as an ISA — if they had it, revealing a strong appetite for practical support to build financial resilience.

Communication and Engagement Are Key

Jonathan Watts-Lay, director of WEALTH at work, welcomed the growing commitment from employers. “Money worries can have a detrimental impact on people’s home and work life,” he told Workplace Wellbeing Professional. “So it’s good to see that employers are stepping up to provide employees with the tools and knowledge to better manage their finances.”

He stressed the need for a variety of learning methods, including in-person sessions, webcasts, animations and interactive platforms such as Money&Me. He also highlighted the importance of savings schemes like the Workplace ISA in helping employees create emergency funds or plan for the future.

“But to boost engagement, it’s important to ensure that employees are aware of all the financial wellbeing benefits on offer, how to access them and how they can use them to their advantage,” Watts-Lay added.

“This is why financial education in the workplace is so important as it can not only help develop understanding and encourage engagement with the benefits on offer but it’s also a catalyst for behavioural change and action.”

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