When inflation peaked and energy bills surged, the cost of living crisis was impossible to ignore.
Employees were openly worried about heating their homes.
Household budgets were under immediate pressure.
Employers responded with one-off payments, hardship funds and emergency support.
Three years on, many organisations may feel that period is behind them.
After all, inflation is lower than it was.
Pay has increased across many sectors.
The headlines are no longer dominated by warnings about spiralling energy bills.
But that doesn't necessarily mean employees feel financially secure.
In fact, there are growing signs that many workers are entering a new phase of financial pressure - one that is quieter, more complex and potentially harder for employers to spot.
Food prices remain significantly higher than they were before the crisis.
Fuel costs have risen again in recent months.
Many households are still adjusting to higher mortgage repayments, while expectations that interest rates would fall quickly have been repeatedly pushed back.
The result is that many employees who expected financial pressure to ease are finding that their money still isn't stretching as far as they'd hoped.
Why this phase is different
The first cost of living crisis was largely about survival.
For some households, the challenge was paying essential bills and keeping up with rapidly rising costs.
Today's pressures look different.
Many employees are managing to pay their bills, but they're doing so without building savings, reducing debt or creating any meaningful financial resilience.
They're coping, but only just.
That distinction matters.
When people are focused solely on getting through the month, it leaves little room for unexpected expenses, future planning or financial confidence.
A broken boiler, an expensive car repair or an increase in childcare costs can quickly turn a manageable situation into a stressful one.
For employers, this means financial wellbeing conversations are becoming less about crisis support and more about helping employees build stability.
The hidden risk employers may be missing
One of the challenges with this new phase of financial pressure is that it's less visible.
During the height of the cost of living crisis, employees were often vocal about their concerns.
Today, financial stress can be much easier to overlook.
Someone may be paying their bills on time while quietly relying more heavily on credit.
Another employee may have stopped saving altogether to absorb rising food and household costs.
Others may be carrying financial anxiety that isn't immediately obvious to managers or colleagues.
From the outside, everything appears fine.
In reality, many employees are walking a financial tightrope.
This is particularly true for middle-income workers.
Financial wellbeing conversations often focus on those in acute financial difficulty, but many households that would traditionally be considered financially comfortable have also come under pressure.
Mortgage renewals, childcare costs, higher insurance premiums and rising everyday expenses have squeezed budgets across income levels.
These employees may not see themselves as struggling, but that doesn't mean they aren't feeling the strain.
Why financial resilience is becoming the new priority
For several years, employer support understandably focused on helping employees navigate immediate financial challenges.
Now, the conversation is beginning to shift.
The question is no longer simply whether employees can afford this month's bills.
It's whether they're prepared for the next financial shock.
Financial resilience is what allows people to absorb unexpected costs without falling into problem debt or financial difficulty.
That might mean:
- Having an emergency fund
- Understanding their spending habits
- Feeling confident managing a budget
- Reducing reliance on credit
- Having a plan for dealing with unexpected expenses
These aren't just personal finance goals.
They're factors that can influence stress levels, productivity and overall wellbeing at work.
What employers should be doing now
The organisations making the biggest difference are moving beyond awareness campaigns and focusing on practical support that helps employees take action.
Help employees understand their financial position
Many people don't have a clear picture of where their money goes each month.
Providing tools and support that help employees track spending, build budgets and identify opportunities to improve their finances can help them make informed decisions before problems develop.
Focus on prevention, not just intervention
By the time someone is in serious financial difficulty, their options may already be limited.
Supporting employees earlier - before missed payments, persistent borrowing or financial stress become entrenched – can have a far greater impact.
Recognise that financial pressure affects more than one group
Financial wellbeing strategies are often designed with a particular audience in mind.
But today's financial pressures are affecting employees at different income levels and life stages.
A graduate renting in a city, a parent paying for childcare and a homeowner facing a mortgage renewal may all be experiencing financial stress for very different reasons.
Effective support reflects that reality.
Build confidence, not just knowledge
Most employees already know they should budget, save and avoid unnecessary debt.
The challenge is turning that knowledge into action.
The most effective financial wellbeing initiatives help employees build habits and confidence, rather than simply providing information.
The question employers should be asking
The question isn't whether financial pressure still exists.
It clearly does.
The more important question is whether your organisation's financial wellbeing strategy was designed for the challenges employees are facing today.
Many employer support programmes were created in response to the height of the cost of living crisis.
But employee needs have evolved.
Financial resilience, debt prevention and long-term money management are becoming just as important as emergency support.
Organisations that recognise that shift early will be better placed to support their people through the next phase of financial uncertainty.
Because while the headlines may suggest the crisis is over, many employees are still waiting to feel the difference.
Written by Caroline Chell
Head of Communications
