Lower-income workers who earn less than £30,000 are bearing the brunt of the cost-of-living crisis, with their employers far less likely to offer meaningful financial wellbeing support, according to new research from Mintago.
The financial wellbeing platform surveyed a national representative sample of 1,333 UK adults in full- or part-time work. It found that two fifths are either ‘very stressed’ (9%) or ‘somewhat stressed’ (30%) at present – of those, 62% said the rising cost of living is a contributor, making it the UK’s most prevalent cause of stress. Among those earning less than £30,000, this figure rises to 69%.
Despite this, just 36% of workers say their employers have initiatives in place that are designed to improve the financial wellbeing of staff. For employees earning less than £30,000, this figure drops to 26%.
The support provided to those earning less than £30,000 also appears to be less impactful, with fewer than one in five (18%) stating that support provided by their employer has improved their financial situation, compared to a UK average of 29%.
The survey also found that just 20% of employees earning under £30,000 think that their employers care about their financial wellbeing. Almost half (44%) of employees would leave their current jobs for an employer that provides better financial wellbeing support.
Chieu Cao, CEO of Mintago, commented:
With inflation remaining at an level, employees are continuing to struggle with the ongoing cost-of-living crisis and require support from their employers now more than ever. This is even more necessary for those on average or lower incomes, with our research showing that those earning under £30,000 are suffering most from the impact of the economic climate.
Chieu Cao, CEO of Mintago
The detrimental effects of financial instability on mental health and overall well-being cannot be overlooked. Studies have consistently shown that individuals facing financial stress are more susceptible to anxiety, depression, and other mental health challenges.
The lack of meaningful financial support from employers exacerbates these issues, particularly for lower-income workers who are already grappling with the burden of the cost-of-living crisis. It is crucial for organisations to recognise the profound impact that financial well-being has on their employees’ mental health and take proactive measures to provide comprehensive support, fostering a work environment that prioritises the overall well-being of their workforce.
Chieu Cao continues:
Regardless of industry or income level, it is vital that employers step up and deliver robust, complete, and impactful financial wellbeing support. It must fit the unique needs of each individual member of staff – businesses cannot take a tick-box approach.
Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.
