Nearly one in four full-time employees are now juggling extra jobs just to make ends meet, and more than half say money worries are affecting how they perform at work.
For many, the stress of rising energy and food costs isn’t just financial; it’s wearing on their wellbeing and focus every single day.
The UK has been dealing with this cost-of-living squeeze since late 2021, and it’s showing no signs of letting up.
Energy bills are set to keep rising over the next few years, even if wholesale prices fall, while food prices hit 5.2% inflation in early October.
Everyday staples like chocolate, meat and coffee are climbing fastest, leaving households with less breathing room in their budgets.
It’s no surprise employees are feeling the pressure.
And workplaces are feeling it too.
Money worries are showing at work
Employees are asking for pay rises just to cover the basics.
Others are taking on extra hours or even a second job.
Even though workplaces are becoming more open about mental health, money is still a difficult topic.
Many people feel embarrassed, worried about being judged, or simply unsure where to turn for help.
Research by YuLife and YouGov found that eight out of 10 employees say financial stress affects how they perform at work.
More than half are worried about their overall financial wellbeing, and most expect these worries to get worse as the cost of living continues to rise.
While around half of employees feel their employer should play a role in supporting their finances, only one in five feel comfortable talking about money at work.
Rising debt and new pressures
It’s not just day-to-day costs causing stress.
Rising living costs are pushing more people into debt.
Free debt advice organisations report that inflation is one of the main reasons more people are struggling to keep up with repayments.
Nearly one in five are borrowing more than they did a year ago, and half don’t expect to save anything in the next 12 months.
Flexible payment options and early wage access can feel helpful, but they carry risks.
While they make short-term cash flow easier, they can also encourage overspending and create longer-term financial stress.
Young workers are particularly affected, with almost half of 18-24-year-olds reporting mental health struggles linked to money worries.
How employers can help
Starting the conversation about money is the first step.
Financial wellbeing has never been more important, and even small actions can make a difference.
Workshops, informal talks, or confidential one-to-one coaching can help employees feel less embarrassed, more informed, and more confident managing their finances.
Building trust is also essential.
Employees need to know their employer genuinely cares, that money matters can be discussed privately, and that support is genuinely available.
The best approach is simple: listen to employees to understand their challenges, find solutions that work, and communicate support clearly and consistently.
Supporting employees in a lasting crisis
Financial wellbeing isn’t a one-off fix.
It’s something that needs to be part of the everyday workplace culture.
Providing access to advice, budgeting guidance, and personal coaching gives employees a safety net, helping them manage stress, make smarter financial choices, and stay motivated.
With living costs continuing to rise, employers who put financial wellbeing at the heart of their culture are helping staff weather the storm, stay resilient, and remain engaged
Written by Caroline Chell
Head of Communications
