A growing number of middle-income employees are buckling under financial pressure, with many turning to credit to cover basic needs and reporting declining mental health, according to new data.
A survey by financial wellbeing platform moneyappi reveals that 62% of UK adults earning between £25,000 and £45,000 are struggling to meet essential living costs — more than any other income group.
The poll of 2,000 respondents lays bare a mounting cost-of-living burden on a demographic often seen as “comfortable”, but now increasingly vulnerable to financial stress. Seven in ten say their wages have failed to keep pace with inflation, while over half say their housing costs take up more than half of their monthly income.
“Middle earners are falling through the cracks of an antiquated system that hasn’t adapted to current systemic issues,” said moneyappi co-founder Ray Law. “They earn too much to qualify for help, but not enough to absorb the rising costs of living.”
Money Worries Now a Workplace Issue
Financial stress is taking its toll not just at home, but at work. According to the survey, 41% of middle earners say money worries have directly affected their performance at work. One in four has taken time off due to finance-related stress or anxiety, while more than a third are contemplating job changes or reduced hours in an effort to manage costs.
The key financial stressors cited include:
- Energy bills: 67% said utility costs are a major source of stress
- Food prices: 59% report their grocery bills have become unaffordable
- Childcare: 44% of parents in this bracket say childcare costs outweigh the benefits of working
- Debt: 38% have delayed or missed a repayment in the past six months
Observers warn that businesses are already feeling the ripple effects of the strain, through reduced productivity, rising absenteeism and higher staff turnover.
Rethinking Support for a Forgotten Workforce
With limited access to government benefits or support schemes, many middle earners feel they are “doing everything right but still falling behind”, say workplace experts. The lack of a financial safety net is prompting calls for employers to take a more proactive role in addressing this wellbeing blind spot, with experts suggesting they can:
- Offer clear, stigma-free communication around financial support resources
- Provide access to financial education tools, budgeting platforms and debt support services
- Implement flexible working policies that help employees manage childcare and travel costs
- Train line managers to spot signs of financial distress and signpost support
“Financial stress isn’t just a personal problem; it’s a workplace issue,” said Law. “By supporting the financial wellbeing of middle earners, employers can boost morale, reduce absenteeism, and retain talent.”
A Wellbeing Priority for 2025
Experts in workplace wellbeing agree that employers need to broaden their approach beyond traditional low-income support.
As economic pressures continue to climb and real wages remain stagnant, the financial health of the workforce is becoming inseparable from overall workplace wellbeing. For HR leaders, the challenge is rethinking assumptions about who needs help and acting swiftly to support a growing group of financially stretched but often overlooked employees.