Financial stress is taking a heavy toll on UK workers, with new research revealing that nearly a quarter (23%) have had to borrow from family and friends in the past year, while almost one in five (18%) have taken on additional debt.
As Debt Awareness Week 2025 begins, experts are warning that money worries are not just a personal issue but a growing workplace concern, contributing to increased stress, exhaustion and reduced productivity.
The research, by WEALTH at work, a financial wellbeing and workplace savings specialist, paints a concerning picture of financial stress infiltrating workplaces, leading to heightened anxiety, exhaustion and reduced productivity.
Financial Struggles Deepen Amid Cost-of-Living Crisis
The UK’s ongoing cost-of-living crisis has exacerbated financial concerns for many employees. According to the research, the biggest financial worries among UK workers include:
- Not having enough savings for unexpected costs (42%)
- Inability to save enough for the future (37%)
- Struggling to cover basic living expenses, including rent, mortgage payments and energy bills (34%)
- Concerns about existing debt (29%)
To cope with financial difficulties, many employees have taken drastic measures, with 28% working additional overtime and 13% securing second jobs. However, these efforts come at a cost to both their personal wellbeing and workplace performance.
The Workplace Impact of Financial Stress
Financial pressures are having a noticeable impact on employee wellbeing and productivity. The study found that:
- 40% of workers report increased stress levels due to financial concerns
- 35% experience mental exhaustion
- 26% suffer from decreased motivation
- 25% feel physically exhausted
- 22% struggle with reduced focus and concentration
- 10% report an increase in sick days
WEALTH at work director Jonathan Watts-Lay said financial stress was no longer just a personal issue but a growing workplace challenge.
He said that employment used to mean financial security but that it was no longer the case because the research showed that nearly half of those who took part, or 44%, were in full-time jobs but seeking advice on debt. He said “when struggling with money, people are less productive when they are in work [and] can be tipped into financial vulnerability and [are] at a greater risk of predatory behaviour from scammers.”
Watts-Lay added that the research should “prompt employers to consider how employees are being supported to tackle money issues head on and build financial resilience.
“Many employers overcome this financial wellbeing risk by providing financial education and guidance, as well as providing access to workplace savings such as ISAs. This support can make a huge difference by giving workers 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.”
Difficulties Talking to Employers
While 61% of workers feel their employer supports their financial wellbeing, only 13% would actually feel comfortable discussing financial concerns with their employer. Older workers (aged 55+) are the least likely to seek help, with only 5% saying they would turn to their employer for financial support.
Experts say this shows a need for companies to remove the stigma around financial struggles and actively encourage employees to access available support.
Some companies have taken proactive steps to help employees manage their financial health. Asda has introduced a workplace savings scheme with payroll firm Wagestream, offering a 4.7% AER savings account, enabling employees to set aside money directly from their salary. And research by asset management company BlackRock found that younger employees are in favour of “salary sidecar” savings schemes, which automatically allocate a portion of wages into emergency savings funds.
Debt Awareness Week, spearheaded by debt charity StepChange, aims to break down the stigma associated with debt and encourage open conversations about financial struggles. Employers can play a key role by:
- Offering financial education workshops
- Providing confidential financial counselling services
- Promoting workplace savings schemes such as ISAs
As financial wellbeing becomes a growing concern, businesses that prioritise financial health initiatives are likely to see a more engaged, productive and resilient workforce. With 43% of workers optimistic about improving their financial situation, proactive employer-led support could be the key to turning financial stress into financial stability.