Employee financial wellbeing and mental health

22 July 2026

It might not come as a surprise to learn that financial wellbeing can have a big impact on our mental health. One report found that almost a third (31%) of people who had faced debt problems in the past three years said their mental health got worse as a result.¹

Financial wellbeing can affect mental health in a number of ways, including:

Worry at not being able to make ends meet
Intense feelings of anxiety
Lack of sleep
Avoidance of letters or calls from creditors
Worsening of existing mental health
Loneliness
Feelings of shame or stigma at experiencing financial struggles
Depression
Guilt at not being able to provide for family

How does financial wellbeing affect mental health in the workplace?

Financial wellbeing can also have a big impact on people in the workplace. A 2025 survey by CIPD found that 31% of employees said money worries had negatively affected their work performance. The survey also found that 19% of employees had lost sleep due to worrying, 15% said it had caused health problems such as stress, and 13% said these worries made it hard to concentrate or make decisions at work.²

Our financial situation can often be seen as a taboo subject, with it rarely being discussed in the workplace amongst colleagues. If a member of your team is struggling financially, they may not feel comfortable discussing this with you or a member of your team. This means that it can be hard to know when one of your team may be struggling with their financial wellbeing.

So, are there some common signs that you can look out for amongst your team that may indicate financial wellbeing struggles?

Looking stressed or anxious.
Low mood.
Not engaging with others.
Not eating lunch and skipping meals.
Decline in productivity.
Being forgetful.
Overspending to feel better.
Difficulty in making decisions.

How can employers support the financial wellbeing and mental health of their team?

While employers may feel that the cost of living situation is out of their hands when it comes to how it affects their employees, there are steps that you can take to help look after your teams’ mental health when it comes to financial wellbeing. Neil Dunk, Counsellor and Team Manager - 24/7 health support line team, shares his tips:

Provide financial education, tools and resources to your team and signpost your team to the support that is available both internally within your business and externally
If you have one in place, remind employees that your Employee Assistance Programme can help with debt support as well as mental health support
Provide training to line managers to look out for signs that a member of their team may be struggling with their financial wellbeing or their mental health
Encourage your team to talk about their problems in order to normalise discussions. This can start with you as the business owner. If you share when you’re struggling, it can encourage others to feel comfortable sharing when they may be struggling too
Encourage skills training that helps employees to move to higher-paid roles. This can help both their financial wellbeing and also their motivation and self-esteem in regards to their career
Look into providing employee discount schemes if you don’t already, such as retail discounts or discounted gym membership

How we can help

With an Employee Assistance Programme* in place, your team can get help with the things that are affecting them right from the start – before they start to impact their wellbeing and productivity. Whether they have financial concerns, are going through a family breakup or are struggling with the stresses of work, you can rest assured that they’ll have someone to talk to confidentially by phone – 24/7, 365 days a year.

Find out more about our business health insurance and our Employee Assistance Programme cover options, including what is and isn’t covered, and get a quote today

*Our EAP options are not available on their own, without other cover options in the plan.

Sources and references

¹Money Advice Trust, 2025

²CIPD, 2025

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