Financial worries are having a negative impact on mental health

As part of a new partnership with leading UK digital pay company, PayDashboard, 87% has been examining how users of its platform are affected by financial insecurity, especially in the light of Covid-19.

Data from nearly 10,000 UK workers showed that over the last 12 months, 1 in 5 have seen their finances as an area of challenge, and a further 16% have been suffering from poor wellbeing due to financial worries. As a representation of the workforce, this means that over a third are reporting stress about their current financial situation and being able to manage their household expenses.

This data supports broader findings by PayDashboard, as part of a study into the current state of financial health and wellness amongst UK employees. The research found that over a third (38%) of the UK is, or has recently been, in serious debt.

The findings demonstrate the need for greater support around pay and financial health at work, as well as better advice online, and highlight the concerning relationship between poor financial security and mental ill health. 40% of those surveyed by PayDashBoard said that they got little or no financial advice and support from their employer.

Lack of support in this area can have significant ramifications on broader mental health as a result of the stress that comes from financial worries. Among 87% users, those with poorer financial security were more likely to feel lonely, be more vulnerable to negative coping styles (excessive eating or drinking) and struggle to be optimistic about the future.

Commenting on the findings, Dr Serra Pitts, 87% Clinical Director and Associate Fellow of the British Psychological Society, said, “There is a strong link between financial worries and mental health problems and we are prone to bottling up how we feel about money because of sensitivities surrounding the subject, making things worse. Those who struggle with money worries are more than twice as likely to suffer from depression and anxiety, five times more likely to have troubled relationships and eight times more likely to have sleepless nights.”

87% offers users a range of solutions if they are worried about money, including a dedicated programme in the app that users can opt into, to help them improve their comfort level around income and expenses. Users can also find useful resources and articles on how to make positive changes to their spending habits and cope with financial stress.

What’s more, as part of its roster of impactful wellbeing solutions, 87% is now offering its tens of thousands of users access to the PayDashboard wellness marketplace, Moneysmart, where the services of a wide range of listed partners are available.

Dr Pitts continued, “A resource like Moneysmart is therefore invaluable, because only with knowledge and support can we gain the confidence to manage our finances better. "