The cost of living crisis is about much more than soaring fuel, food and energy bills. Even with the government’s support packages, there is risk that it could turn into a public health and mental health crisis too. However, there is much employers can be doing to help.
Despite multi-million-pound support packages, there are still record levels of inflation, plus bills are rising sharply in other areas as well as energy. One of the less discussed consequences of this crisis is its possible impact on employee health and wellbeing.
The links between mental and financial wellbeing are well-recognised too. If you’re worried about making ends meet or putting food on the table, it significantly impacts your mental health. Even if an employee is not being directly affected, they could be worried and fearful about the effect of the crisis on loved ones and dependents.
With all this in mind, we spoke with Antony Price, Partnership Manager at PayPlan to learn about the things employers can do to support staff during the cost of living crisis. Below is a summary of the key points for employers to consider.
Preparation is key
The cost of living crisis is going to impact workplaces, but if employers prepare ahead they will be in a better place the manage challenges. For example, preparation can include things like educating HR staff and line managers on how to have conversations with employees about money worries and their mental health. Having difficult conversations can feel daunting for line managers. They may be unsure what to say or how to react, so providing training can ensure that they feel confident to approach these types of conversations in a sensitive way.
Understand the boundaries when having conversations
It’s also key that line managers are aware of when they need to signpost employees on to support. For example, it is not the line managers role to start giving employees financial advice. Having a clear understanding of the boundaries between what you can or can’t say is something that training can support with. The line manager is there to listen and signpost staff to organisations or services for support (such as a debt helpline or an employee assistance programme).
Try to normalise the conversation around money worries
A previous study by the Money and Pensions Service (MaPS) found that 29 million adults don’t feel comfortable talking about money, despite 48% admitting they regularly worry about finances. This shows that a lot of people have money worries, but don’t feel comfortable talking about them. Various factors such as our upbringing and feelings of shame or embarrassment can stop people from opening up. There is also a lot of stigma around mental health, which can be another reason people are reluctant to talk about their struggles.
Normalising the conversation about money worries in the workplace can make a real difference, and help cultivate an environment where people feel comfortable reaching out for support.
Share financial support across every level of employee
The cost of living crisis is affecting everyone across different income levels. PayPlan highlighted that for the first time in 12 years, they are seeing a lot of people requiring help from what they categorise as ‘higher-end earners’. Consider how you will get your supportive material out to all staff, no matter what their seniority.
Don’t rely on people coming to you for help
We know that many people don’t feel comfortable coming forward about a money problem, so with this in mind, don’t rely on people to reach out to you if they need support. Instead, take initiative and get the support out to them in various different ways. For example, posters in toilets are easy to identify and allow staff to take down details in private. Also consider spreading awareness in canteens and on notice boards.
For workers who are hybrid or remote, use channels such as the staff intranet, blog content, all-staff emails and team bulletins to distribute your support.
Pushing out the support to staff sends the message that you actively want to help and support them, which in turn, can encourage employees to reach out. It’s worth noting that the rise in living costs isn’t going to go away any time soon, so it’s important to keep sharing financial and mental health support on a continual basis.
If you have access to an employee assistance programme (EAP) make sure to include contact details as part of your communications.
Organisations who can offer support
PayPlan – Provides a free confidential helpline for debt advice on 0800 316 1833 (open Mon-Fri 8am–8pm Sat 9am–3pm).
National Debtline – Provides a free debt advice line on 0808 808 4000 or a webchat service (open Mon-Fri 9am – 8pm and Sat 9:30am – 1pm).
Money Helper – Provides free financial guidance.
Mind – Provides mental health support.
Samaritans – Provides a free confidential helpline on 116 123 and offers emotional support.
Ref: WPW0214 this information was reviewed January 2025.
