A new 'State of Financial Wellbeing' report reveals the top money concerns impacting Brits right now, highlighting the fact that financial worries now exceed mental health and work-life balance as the number one issue impacting workers. How are they going to pay for their basic living costs?

KEYPOINTS

• Four in ten UK employees' biggest worry is money and a quarter (24%) worry about it every single day - an 8% jump since last year.
• The biggest factor driving financial concerns is the fear of unexpected costs - cited by almost half (47%) of respondents.
• A third of employees (31%) are worried because they do not have any savings at all - and nearly two in 10 have unsecured debts of £7k or more.
• Over two-thirds of respondents (65%) say they would like more support from their employers when it comes to their financial health.
• Employers are rushing to offer extra support to plug the gap - a swing from 51% to 93% in the past year.

As the cost of living crisis continues to burden Brits across the country, a new report reveals 12 million UK workers(a) are grappling with serious financial insecurity and cite it as their biggest concern  - topping mental health issues (34%) and work-life balance (32%) struggles.

The annual State of Financial Wellbeing Report from Wagestream - which canvasses the views of 5,000 UK employees and 600 HR professionals - reveals one in five UK workers (20%) do not feel in control of their financial future.

Over a quarter (26%) run out of money before payday, 24% worry about money every single day, and a third (31%) don't have any savings at all. Adding to this, the Money and Pensions Service recently revealed that 11.5million people have less than £100 to fall back on - showing there is clearly little to no financial safety net for a huge proportion of hard-working Brits.

The report also highlights how UK employers rushed to fill the gap left by living costs and traditional financial institutions. More than two-thirds (65%) of respondents say they would welcome more support from their employers - but a current disconnect between the support being offered, and the support that workers most need, is holding people back from achieving their financial goals.

According to the data, half say they would like their employers to provide them with tools to help them save more money - yet according to HR directors, only 18% are planning to introduce this as a company benefit.

Furthermore, the report also sheds light on the sense of stigma and shame many workers experience in relation to their financial concerns. More than two-thirds (68%) admit they hide their money and mental health worries from their employers as they don't feel it's 'safe' to talk about this in the workplace.

Wagestream - a financial wellbeing app offered through employers such as Bupa, Halfords, Greene King, and the NHS - provides a range of personal finance tools designed to support frontline workers. People can choose how often they get paid, track their shifts and earnings each day, chat to a personal money coach, and get fairer deals on products like insurance and broadband. They can also build up rainy day savings pots - Wagestream says around 50,000 frontline workers have started saving for the first time with the app. 

Speaking about the report, Emily Trant - head of Impact and Inclusion at Wagestream, said: "We are facing an unprecedented financial crisis, and those being hit the hardest are frontline workers - people in sectors like hospitality, retail, and healthcare, where shift patterns are irregular, and income varies each week. Yet, they are overlooked and underserved by financial services: they pay a premium of £490 per year for basic services like energy, insurance, and credit - the equivalent of 14 weeks' worth of food shopping.

"The financial sector simply isn't incentivised to help our frontline workers - but employers are. There's been a wave of employers plugging this gap because they now see that happier, healthier, empowered people will be more productive and more loyal to them as employees. Companies doing this are typically hiring 27% more quickly, and see a 16% reduction in staff turnover. If the trend continues, employers could play an incredible societal role in bringing fairer banking to more than half of the working world."

The top three financial priorities for UK employees this year are to build a rainy day fund (31%), reduce debts (30%), and spend less than they save (21%).

Sarah Porretta, Propositions, Insights and External Engagement Director at Money and Pensions Service - the UK Government's arms-length body for improving the country's financial wellbeing, says: "Supporting workers, particularly those in vulnerable circumstances, to create financial stability for themselves has never been more important given the mounting pressures on household and life expenses. It's really encouraging to see that the vast majority of workers would welcome support - and it's now crucial that employers recognise this and introduce new measures to promote long-term financial wellbeing."

Jamie Lawrence, Insights Director and financial wellbeing expert at Wagestream, adds: "It's a sad reality that our report also shows there is still a sense of shame associated with financial insecurity. People are reluctant to talk about their money worries, particularly in a work setting, which only perpetuates the problem further.

"The good news is that there is a real appetite amongst UK companies to break that stigma and help their employees. We have seen, in practice, how providing financial wellbeing tools - like flexible pay, money coaching and savings pots - can make a dramatic difference to an individual's financial stability."

About The State of Financial Wellbeing Report

The State of Financial Wellbeing Report was based on findings from a survey conducted on 5,000 UK employees and 600 HR professionals in November 2021 and a further 18 qualitative interviews with UK employees in January 2022.

About Wagestream

Wagestream is the financial wellbeing app founded by charities, designed for frontline workers, and built around flexible pay. Offered through caring employers like Bupa, Halfords, Greene King, and the NHS, it makes work more inclusive, fair, and rewarding for one million people - by giving them access to fair financial services built around flexible pay.

Workers use Wagestream to choose their own pay cycle, manage their budgeting, save for a rainy day, chat to a personal money coach, and get fairer deals on financial products - all in one app, with no change to payroll.

A social charter drives Wagestream: every service it provides must measurably improve financial wellbeing. Over 70% of people using Wagestream feel more in control of their money, leading to a happier, healthier, more productive workforce.

Find out more at www.wagestream.com