Nearly three-quarters of employees are now experiencing financial worries, highlighting a growing concern for workplaces and policymakers alike. New research suggests the pressure on workers’ finances has increased significantly in recent years, with many employees saying money concerns are affecting their daily lives.
A survey conducted by occupational health provider PAM Group found that 73% of employees now report financial worries, up from 63% four years ago. The findings also show that a third of workers say these concerns are impacting their everyday lives.
Financial pressure on employees could intensify following the government’s latest budget announcements. Chancellor Rachel Reeves confirmed that income tax thresholds will remain frozen until April 2031, a year longer than previously expected. The move is expected to push more people into higher tax brackets over time, with estimates suggesting around 1.7 million additional individuals will end up paying more tax.
Alex Fenton, group CEO of recruitment firm The Legends Agency, warned that the decision could affect employee morale as take-home pay comes under increasing pressure. “When the government squeezes what British workers actually take home, businesses inherit demotivated teams and impossible choices: absorb wage demands they can’t afford, or move operations to locations where both employers and employees get better value,” he said.
The research indicates that financial anxiety is not evenly distributed across the workforce. Younger employees appear to be the most affected, with 77% of those aged 18–34 reporting money worries compared with 49% of workers aged over 55. Women are also among those most impacted by financial pressures, reflecting wider economic challenges faced by younger workers and certain demographics.
Despite the prevalence of financial stress, many employees still feel uncomfortable discussing money concerns at work. According to the survey, two-fifths of employees say they are reluctant to talk about financial worries with their manager.
The findings also highlight a significant gap between the financial support employees want and what they are currently able to access. More than half (53%) of those surveyed said they would like financial well-being support through their workplace, yet only 12% reported having access to such services.
Elaine Preston, welfare advisor at PAM Group, said the scale of financial anxiety among employees should be a concern for employers. “It’s deeply concerning that seven out of 10 employees now have financial worries, with over a third saying this affects their everyday life,” she said. “Women and younger workers are particularly impacted, with half of employees saying they want access to financial wellbeing support through work, but just one in ten are able to access this.”
Read the full article on Personnel Today: “Three-quarters of employees now have money worries, with insecurity rising”
