Work and the impact of the cost of living crisis
'How am I going to make it to payday?'
'Work is so stressful but I can't afford to lose this job.'
'If I work overtime I could pick up that extra cash I need.'
'How can I focus on work when I can't get my mind off money.'
...the thoughts of millions of people up and down the country.
The financial pressures in the UK in 2025 are not only affecting individuals' immediate financial stability but also their long-term planning and overall well-being.
Last year, finance experts LCP conducted a survey of around 10,000 UK employees with findings revealing that over half feel financial pressure is impacting their performance at work.
The survey shows that the weight of money worries and concerns is having a significant impact on people’s everyday lives as well as their behaviour at work. Over half of those surveyed felt that this financial pressure was impacting their job performance and ability to manage money effectively.
‘The cost of living, including stubbornly high energy bills, continues to impact families, individuals, and communities, with particular strain being felt by women and those with parental responsibilities,’ says Vikki Brownridge, from StepChange Debt Charity.
The 2024 Global Benefits Attitudes Survey also investigates the links between money, work and wellbeing. They found 89% of employees have worries about paying for basic living costs, with over half stating it's having a negative impact on their overall wellbeing, resulting in higher levels of stress and anxiety.
Vikki continues: 'These challenges are not temporary. They reflect the long-term financial pressures many are facing and without the right support, it's only going to get harder for people to manage their finances, impacting their health and wellbeing.'
The NHS is increasingly aware of this mounting issue and state: 'Worrying about money can affect our mental wellbeing and ability to manage money can be affected by a mental health issue. The two are often linked.
Increasing cost of living pressures can lead to more financial stress, so knowing ways to look after your mental health when dealing with money problems is more important than ever.'
Money concerns can affect our health in many ways, including:
financial anxiety - stress and worry caused by thoughts of not having enough money
low mood or feeling depressed about money
drinking too much alcohol or smoking more than usual to calm anxiousness
eating unhealthily due to buying low-cost food or reduced appetite due to stress
lower self-esteem, or feelings of guilt or shame if we're not currently employed or earning enough
sleep problems - either fatigue due to stress or sleeplessness caused by financial concerns
failing to attend medical appointments (such as dental) due to cost or not feeling able to afford medicines
So what can we do about it?
Managing the impact of financial worries on your health can be tough, but there are several strategies you can use to reduce stress, improve your mental and physical wellbeing, and regain a sense of control. Here’s how you can approach it:
Take control of your finances (where possible)
Create a budget: Knowing exactly where your money is going can help you feel more in control. Start by tracking all income and expenses, even small ones. Use apps or spreadsheets to organise and stick to a budget.
Debt management plan: If debt is causing a lot of stress, break it down into manageable chunks. Consider using the ‘debt snowball’ method (paying off smaller debts first) or ‘debt avalanche’ (tackling high-interest debts first). Seeking advice from a credit counsellor can also provide clarity on how to manage payments.
Emergency fund: Building a small emergency fund (no matter how small) can provide a cushion for unexpected expenses and reduce the feeling of overwhelm.
Manage stress and anxiety
Mindfulness and meditation: Practices like mindfulness, yoga, or deep breathing exercises can help lower stress levels. Online guided meditations can really reduce anxiety.
Exercise: Regular physical activity releases endorphins, which are natural mood boosters. Even something as simple as walking or stretching can have a big impact on reducing stress.
Journalling: Writing down your thoughts can be a cathartic release. You could focus on things you're grateful for, solutions you’re exploring, or simply get your frustrations out on paper. Journaling can help shift your mindset from a place of worry to problem solving.
Limit social media: Constant exposure to those around us can encourage unhealthy comparisons. Set limits on how much time you spend on platforms that may increase your worries or lower your mood.
Focus on health
Healthy eating: Financial worries can sometimes lead to unhealthy eating habits. Try to make small, nutritious meals at home, which is often more cost effective. Eating well can improve your energy levels and mood.
Sleep hygiene: Stress can disrupt your sleep, but creating a calming nighttime routine (like no screens an hour before bed) and keeping a consistent sleep schedule can help improve rest.
Exercise: You don’t need a gym membership to get active - home workouts, jogging, or simply walking around your local area are great ways to release tension and reset your mind.
Hydrate and avoid stimulants: Stay hydrated and avoid relying on too much caffeine or alcohol as a way to cope with stress. Both can worsen anxiety and disrupt sleep.
Seek support
Therapy: Talking with a therapist can help you process the emotional strain of financial stress.
Support groups: Connecting with others in similar situations can alleviate isolation. Look for online or local support groups that focus on financial stress, anxiety, or mental health.
Financial counselling: Free or low-cost financial counselling services can help you create a sustainable financial plan, reduce debt and find resources for managing finances during a tough time. Mental Health and Money Advice offers information and advice for anyone struggling with money because of mental illness, or whose financial situation is affecting their mental health.
Social support and relationships
Open communication with loved ones: If financial issues are affecting your relationships, try to communicate openly with your family, partner or a trusted friend. Being honest about the challenges can reduce your isolation by creating an understanding, supportive network.
Shared Goals: If you have a partner or family, set goals together for budgeting, saving, and managing outgoings. Teamwork like this often reduces the sense of individual burden and responsibility.
Focus on what you can control
Set small, achievable goals: Try to break big financial goals into smaller, manageable tasks. For example, instead of aiming to pay off all your debt in one go, consider reducing it by a specific percentage or amount each month.
Celebrate wins: Acknowledge the small victories - whether it’s sticking to your budget for a week or finding a way to save on supermarket spending. These moments will build momentum and foster a real sense of accomplishment.
Control your narrative: Focus on what you can change right now. Your circumstances might not be ideal, but by focusing on practical steps you can take, it can help shift your mindset from helplessness to empowerment.
Take time for yourself
Engage in low-cost activities: Find ways to relax or feel fulfilled that don’t involve spending money. Reading, walking in nature, or creative activities can give you a sense of peace without adding to your financial burden.
Set boundaries: While it’s great to reach out for support, don’t overcommit to social events or obligations that may cause more financial strain. Take care of yourself first.
Access available resources
Assistance programmes: Depending on where you live, there may be programmes available for food, housing, and health support. Don’t hesitate to reach out to local community services, charities, or government incentives.
Income Support: If possible, consider exploring alternative sources of income, like part-time work, freelancing, or selling items you no longer need. Having multiple income streams can provide some breathing room.
There are various organisations out there to support with debt and financial concerns. These include:
References