Why UK businesses need to support their employees’ financial wellbeing

Financial wellbeing is no longer a “nice to have” for UK businesses. It is a critical part of building a healthy, productive workforce. Many employees are experiencing financial stress due to the ongoing impact of the cost-of-living crisis, rising housing costs, and persistent inflation. This is negatively impacting their performance, engagement, and overall wellbeing.

Financial worries can filter into the workplace. Employees who are anxious about money are more likely to: be distracted at work, take time off due to stress-related illness, and struggle with mental health challenges. Research consistently shows a strong link between financial stress and reduced productivity, higher levels of sickness, and increased staff turnover. For employers, this translates into higher costs, lower morale, and a loss of talent.

Supporting employees financial wellbeing demonstrates that a business genuinely cares about its people. Practical measures such as fair pay, transparent pay progression, access to financial education, savings schemes, debt support, or salary sacrifice benefits can make a meaningful difference. Even small interventions, like signposting to free financial guidance from Money Helper or free independent debt advice such as Stepchange, can also help employees feel more in control of their finances.

Colleagues engage in a collaborative discussion during a team meeting in a modern office setting.

There is also a strong commercial benefit to invest in employee wellbeing. Organisations tend to see higher engagement, stronger loyalty, and improved employer brand reputation. In a competitive labour market, offering financial wellbeing support can be a powerful tool to attract and retain talent.

Importantly, financial wellbeing is closely linked to diversity, equity, and inclusion. Lower-paid workers, younger employees, and those with caring responsibilities are often adversely affected by financial pressure. By providing financial support, businesses can help create a more supportive workplace culture.