Financial stress is contributing to significant workplace absence across the UK, according to new findings, with 2.05 million workers have missed work due to money-related pressures in the past year.
The study, relased by specialist lender Pepper Money UK, estimates that 8.4 million working days lost, costing the UK economy around £860 million in lost output.
The report identifies a growing strain on employees dealing with financial uncertainty, mental health pressures and concerns about wider economic conditions. The findings highlight how money worries are affecting attendance, wellbeing and access to support services.
The study also shows that 37% of UK adults have experienced significant financial stress in the last three years. A third say their financial situation is negatively affecting their mental health, with the highest levels reported in London, the North East, the North West and the Midlands. According to Pepper Money, the pressures facing households are intensifying as people manage increasingly complex finances and ongoing cost of living challenges.
“Financial stress is now having a measurable impact on the UK economy. With more than 2 million people missing work due to money pressures, the scale of lost productivity is a cause for concern,” said Paul Adams, Sales Director at Pepper Money.
Regional Variations Show London Under Pressure
Londoners report the highest financial anxiety in the country, with 61% worried about their financial position compared with the UK average of 56%. They are almost twice as likely to miss work due to money concerns, with 11% reporting absence for financial reasons compared with 6% nationally.
The report also notes that financial strain is leading more Londoners than the national average to seek support from mental health services.
The Specialist Lending Study outlines concerns about the wider economy as a key driver of stress, with 56% of UK adults worrying about their financial position because of current economic conditions. The findings follow the launch of the Government’s National Financial Inclusion Strategy, which recognises mental health as an essential part of financial resilience and aims to improve access to financial services for those facing economic and wellbeing challenges.
Adams added, “The human impact behind these numbers is just as stark. A fifth of UK adults are now reporting significant financial stress, and many are struggling with the mental and emotional toll this creates.”
Calls for Support as Financial Complexity Grows
Across the West Midlands and North East, 60% of adults are worried about their financial position, while the East Midlands reports concern at 59%. The study notes that these regional variations reflect the uneven impact of economic pressures and the need for financial services to adapt to changing demands.
The report argues that more inclusive lending options and accessible guidance could play an important role in helping people regain control of their financial situation. With many households facing long-term uncertainty, the data suggests that clear advice and responsive support will become increasingly important.
Adams added, “As households face increasing complexity in their financial lives and a difficult cost of living landscape, independent advice has never been more vital. People need clear guidance, empathetic support and more inclusive lending options to help regain control and maintain stability.”