How to support financial wellbeing in the workplace

Financial stress is now one of the most pressing issues affecting UK workplaces, alongside retention and legal risk. Employers can support financial wellbeing by introducing a clear financial wellbeing policy, breaking down the stigma around money worries, training managers to spot the signs of financial stress, and giving employees access to confidential guidance and support, for example through an Employee Assistance Programme (EAP).

Why financial wellbeing matters more than ever

The government's Keep Britain Working review found that sickness absence has reached an average of 9.4 days per employee, a 15-year high and nearly double pre-pandemic levels (5.8 days).

Mental health issues, such as stress, depression and anxiety, are now the leading cause of long-term absence (41%) and the second most common cause of short-term absence ([29%]) source: CIPD Health and wellbeing at work. According to the Health and Safety Executive, work-related stress, depression or anxiety accounted for 22.1 million working days lost in 2024/25.

At the same time, the cost of living continues to put pressure on working households. According to the Office for National Statistics 2026.

• 88% of adults said the cost of living was one of the most important issues facing the UK. Source: Office for National Statistics

• 62% said their cost of living had increased in the past month. Source: Office for National Statistics

• 21% could not afford an unexpected but necessary expense of £850. Source: Office for National Statistics

Financial pressure is likely adding to the rise in stress-related absence. For leadership teams, the business case is clear: targeted financial wellbeing support can reduce risk, improve engagement and help stabilise mental health-related absence.

That matters, because the cost of workplace absence is estimated at £85 billion a year. source: Keep Britain Working review. Since April 2026, the Employment Rights Act 2025 has also made Statutory Sick Pay payable from the first day of absence, and removed the Lower Earnings Limit, adding further cost for employers [optional: add the government's cost estimate, with its source].

What is financial wellbeing?

Financial wellbeing is a person's ability to meet their current commitments, cope with short-term financial shocks and plan for the future.

For organisations, financial wellbeing has a direct impact on performance. When people have a basic financial buffer and access to fair credit and guidance, they're more likely to stay focused and stay in their role. Poor financial wellbeing is closely linked to poor mental health, including disrupted sleep and difficulty concentrating at work. It's no surprise, then, that 1 in 5 organisations say poor financial wellbeing affects productivity.

Why financial wellbeing is important in the workplace

Workplace performance and productivity: 31% of UK workers say financial concerns have negatively affected their performance at work, rising to 37% among those earning under £40,000. source CIPD.

Declining mental health: just under [1 in 3] UK adults report feeling anxious about their financial situation, and over [1 in 4] feel stressed for the same reason source: ONS

Rest and recovery: many people cope with financial stress by cutting back on essentials or taking on extra work, which leaves less time for rest and recovery.

Absence and presenteeism: financial stress can lead to dips in performance, rising presenteeism and avoidable absence, often without leaders realising that money worries are the underlying cause.

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How to promote financial wellbeing in the workplace

Lead with commitment, not just good intentions. Make financial wellbeing part of your workforce strategy, with clear ownership, data, policies, support systems and measures that leadership teams can apply day to day.

1. Introduce a financial wellbeing policy

Set a simple, organisation-wide policy that covers benefits, protections and signposting. Align it with your work-related stress risk assessment, so HR and leadership teams know exactly when and how to escalate concerns.

2. Break down the stigma around money worries

Many people don't feel comfortable raising financial concerns at work, even when those worries affect their mental health. Leadership teams can change this by normalising conversations about money and signposting support clearly. When the stigma is removed, people are less likely to suffer in silence.

3. Offer practical help, information and support

Financial stress can be hard to talk about. People may feel embarrassed, unsure where to turn or overwhelmed by trying to cope alone. That's why confidential information, guidance and emotional support are so important, giving people a safe first step towards getting back on track.

Give leaders the tools to help

If financial stress is affecting performance in your organisation, give people faster access to specialist support and practical tools they'll actually use.

Leadership training: equip managers and HR teams with the knowledge and confidence to spot the early signs of financial and mental distress, and to signpost support.

Clinically led wellbeing support: integrate mental health and financial support, because problems rarely arrive alone. Mental ill health is the leading cause of long-term absence, and much of it may be linked to financial stress and anxiety.

Related article: Workplace Wellbeing Initiatives That Deliver Measurable Results

How an EAP can support financial wellbeing

Through Wisdom Wellbeing's Employee Assistance Programme (EAP), employees can speak to a professional 24/7 about the impact of debt, rising living costs or financial uncertainty. They'll get support to help them think clearly and make informed decisions. Alongside emotional support, employees can access practical information and guidance on topics such as housing, debt and consumer rights, helping them navigate complex situations without feeling alone.

For managers, the EAP's management support line offers guidance on handling difficult conversations, helping make sure leadership responses are consistent, supportive and in line with duty-of-care expectations. Occupational Health assessments are also available at preferential rates, giving early clinical clarity when financial stress begins to affect someone's health or attendance.

• Financial wellbeing coaching with MUNNY: confidential coaching sessions to help employees with budgeting, debt and planning ahead.

• Virtual GP: fast access to a GP when financial stress starts to affect physical health.

• Dedicated Occupational Health assessments: to help you put reasonable adjustments in place and maintain a safe, supportive working environment.

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Conclusion

Financial wellbeing isn't a perk. It's part of managing risk. High absence rates are closely linked to poor mental wellbeing, which is often tied to ongoing cost-of-living stress. Leaders who build financial wellbeing into their policies, training and clinically led support can see lower legal risk, better performance and engagement, and stronger retention.

FAQs

What does good financial wellbeing support look like in an organisation?

A clear policy, access to short-term savings and fair credit, stigma-free guidance, an integrated EAP and capable managers, all aligned with your risk and absence trends.

What are the earliest signs of financial stress in employees?

Early signs of financial stress often show up as changes in behaviour, such as reduced concentration, more mistakes, avoiding team discussions about costs, or repeatedly asking for overtime or extra shifts. Managers may also notice employees seeming anxious around payday, frequently mentioning bills, or hesitating to take annual leave because of money worries.

What emotional symptoms should leaders be aware of?

Financial strain often shows up as low morale, irritability, withdrawal or a dip in confidence, similar to the way stress presents. Mental exhaustion and reduced motivation are also common. Leaders should treat these signs as early warnings that need sensitive support.

Are there physical signs linked to financial stress at work?

Yes. Financial worries often contribute to fatigue, disrupted sleep, headaches and restlessness, all of which can reduce productivity. While physical symptoms can have many causes, they often get worse when combined with cost-of-living pressure or anxiety about debt. The link between stress and absence is well established: HSE reports 22.1 million working days lost to stress, depression and anxiety in 2024/25.

How should managers approach a sensitive conversation about money worries?

Use the same approach as you would for any conversation about stress. Start with what you've noticed, not assumptions, e.g. "I've noticed you seem more overwhelmed lately…". Focus on how the person is feeling, rather than asking directly about debt. Make it safe for them to share, explain the support available (such as your EAP, financial guidance or flexible working), and agree practical next steps. HSE's Working Minds 5 Rs (Reach out, Recognise, Respond, Reflect and make it Routine) work well for conversations about financial stress too.

What signs tell leaders they need a stronger financial wellbeing strategy?

Common signs include more requests for salary advances, increased use of hardship funds, higher turnover in lower-paid roles, and more questions from employees about Statutory Sick Pay, sick pay or unpaid leave.

What practical steps can employers take when financial stress is identified?

Review workloads, signpost support clearly, offer access to financial guidance, and make sure your policies on pay, expenses and sick pay are fair and transparent. Benefits such as cost-of-living support and travel season ticket loans can also help. Build financial wellbeing into your wider wellbeing strategy, rather than treating it as a standalone perk.

Do employees want employers to provide financial support and guidance?

Yes. Financial worry remains widespread, and many employees value confidential, practical guidance from their employer. Targeted support can help them stay focused and feel more in control.

Related articles

Workplace Wellbeing Initiatives That Deliver Measurable Results

How to Reduce Work-Related Stress: 6 Ways to Support Staff

How to spot the early signs of stress in your team

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