More Brits feel disengaged, demotivated or anxious as rising cost of living feeds stress levels
Our headlines in recent weeks have been dominated by the latest inflation figures, reaching a 40 year high of 9 per cent, as well as the cost of living crisis, which is raging on.
As the nation and the media come to terms with the prospect of a recession, one crucial impact of the UK’s financial downturn has been overlooked – the imminent mental health crisis it is causing.
Experts from the Lifeworks Mental Health Index have told City PM that the UK is facing somewhat of a mental health crisis due to the current financial turmoil.
In fact, 43 per cent of Brits are feeling more sensitive to stress compared to before the pandemic, and Britons without emergency savings are 60 per cent more likely to report the pandemic has negatively impacted their ongoing mental health.
As inflation and the rising cost of living continues to attack people’s emergency savings, financial anxiety will grow and UK’s mental health crisis will escalate, according to Paula Allen, global leader and senior vice-president of research and total wellbeing at LifeWorks.
Allen told City PM this morning that “as the cost-of-living crisis continues, employees are facing increasing financial pressures. In turn, taking a toll on their mental health and wellbeing.”
She pointed out that energy, public transport, petrol and food is the highest it’s ever been in 13 years and “whilst the obvious solution to ease financial worries would be to offer pay settlements in line with rising inflation rates, for many employers this is not possible and fails to address the root of mental health concerns for employees.”
“It’s understandable for employees to develop financial anxiety and if left unaddressed, this can manifest into feeling disengaged and demotivated by work.”
Paula Allen
Allen argued employers should consider support packages in this period, such as financial wellbeing support, including educating employees on these rising costs or providing perks such as discounted food schemes.
“Lifestyle benefits like gym memberships and health insurance can also help protect employee mental health,” she stressed.
Also, by promoting flexible working opportunities, employees can cut on commuting costs.
“In fact, we found that 31 per cent cent of Britons report that flexibility is the most important action taken by their employer to support their mental health.”
In order to enable employees to feel comfortable highlighting financial concerns, especially when it impacts their performance and wellbeing – workplace culture needs to be a priority, she continued.
“By cultivating a culture of openness around money, employers can encourage open lines of communication and mitigate financial stress,” Allen concluded.