Millions of UK Workers Fear They Can’t Afford Essentials, New Research Finds

A third of UK workers are worried they can no longer afford basic living costs such as food, rent and energy bills, according to new research.

The study, from financial wellbeing specialist WEALTH at work, surveyed over 2,000 employees and found that 34% had difficulty meeting day-to-day expenses, 42% lacked savings for unexpected costs and 29% were concerned about personal debt. A further 37% feared they could save enough for the future.

The findings come amid a confluence of global and domestic pressures, including the reintroduction of trade tariffs under US President Donald Trump, ongoing conflicts abroad and the recent rise in UK National Insurance, all of which are placing additional financial strain on households and businesses alike.

Financial Stress Is Worsening

“Many people are continuing to feel the financial squeeze on household income,” said Jonathan Watts-Lay, director of WEALTH at work. “However, it’s important for people to not bury their heads in the sand and access the support available to get on top of their finances.”

The new research underlines the urgency of employer intervention, with Watts-Lay warning that a lack of financial literacy and support is leaving staff vulnerable to spiralling debt, long-term hardship and poor wellbeing outcomes.

“Most would benefit from having a better understanding of money but are confused where to start,” he said. “Proactive employers are actively working to help employees improve their financial future by providing a range of financial wellbeing support.”

Workplace Wellbeing Begins With Financial Security

Experts say the financial challenges facing employees are not only damaging morale but could also hit employers’ bottom lines through reduced productivity, increased presenteeism and absenteeism.

WEALTH at work’s newly published list of 10 practical steps for financial control — designed for employers to share with staff — covers budgeting, debt consolidation, emergency savings and more. It includes links to free tools such as the MoneyHelper budget planner and savings calculator, as well as warnings about financial scams, which affected 15% of UK adults between 2023 and 2024.

Among the guidance, employees are encouraged to:

  • Set up a monthly budget and track spending with free apps
  • Prioritise paying down high-interest debt
  • Build a rainy-day fund to cover unexpected costs
  • Use workplace ISAs and Share Plans to develop long-term savings

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What Employers Can Do

For employers, the message is that support in financial wellbeing should go beyond one-off seminars or signposting. Experts suggest the most effective organisations are embedding financial resilience into their wider wellbeing strategies.

Key actions for employers include:

  • Offering regular, tailored financial education workshops. For example, covering pensions, mortgages or energy-saving tips relevant to different life stages
  • Providing access to independent financial coaches or helplines
  • Facilitating payroll-linked savings schemes, such as Workplace ISAs or emergency savings pots
  • Using internal communications to raise awareness of budgeting tools, government support, and scam avoidance
  • Creating a safe culture where staff feel comfortable discussing financial concerns or asking for help

Watts-Lay said it could all “make a huge difference by giving people the opportunity to understand their finances, including ways to save money, learn about budgeting, manage debt, and how to boost savings and prepare for retirement.

“After all, when employees feel in control of their finances, overall wellbeing is improved which in turn can lead to increased productivity and less absenteeism in the workplace.”

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