The UK is facing a cost-of-living crisis. According to reports, the average UK home could see a £2,000 rise in energy costs over the next year. When coupled with increases in the cost of daily expenses such as broadband, council tax, petrol and food, it seems that there are few people in the UK who will be unaffected.
Those who previously felt comfortable about their financial position could face unfamiliar challenges as they try to adjust their budgets and lifestyles to accommodate these rising costs. Meanwhile, those who were already struggling financially could face a desperate time, with the prospect of having to decide between “heating or eating”, a real possibility for many.
Importantly, the impact of the rising cost-of-living could reach far beyond an individuals’ day-to-day struggle to make ends meet though, as the link between financial wellbeing and health is widely recognised. Being in financial difficulty is a proven source of stress and anxiety, which can lead to both physical and mental health issues. It should be no surprise that financial stress is recognised as a root cause for most workplace absences, and the biggest cause for divorce in the UK.
In a recent survey (undertaken before the cost-of-living crisis began) the Money and Pensions Service (MaPS) found that 45% of adults in the UK didn’t feel confident about managing their money on a day-to-day basis. The sharp increase in the cost-of-living, is only likely to increase the stress, anxiety, and health issues that financial troubles can bring. From an employer’s perspective this could result in increased staff absence, a less happy workforce and, ultimately, reduced productivity.
So what can employers do to help their employees navigate this difficult period, reduce money related stress, and lessen its impact on their business? Helping to increase employees’ confidence and ability to deal with money matters through financial education in the workplace, is certainly a good place to start, and Better With Money can help.
Better With Money brings money matters to life in an interesting and accessible way and provides employees with the tools and knowledge they need to become more money minded. Our financial education webinars and courses cover a range of practical areas including budgeting, how to reduce outgoings, prioritising payments, maximising your income, and managing and tackling debt. We provide tips and guidance which are both impartial and easy to understand, as well as information on where to find help if needed.
We don’t profess to have the solution to the cost-of-living crisis. However, we do aim to help employees become Better with Money and more money-minded, which can help reduce the stress that money can bring.
If you would like to find out more about the courses Better with Money provides, please contact us.