Financial stress hitting productivity for one in six UK workers

Financial pressure is affecting the performance of almost one in six UK employees, with managers and working parents among those particularly likely to report an impact on their productivity. 

Research from TELUS Health found 62 per cent of employees are worried about their finances, while 17 per cent say financial stress is negatively affecting their performance at work.

The findings, from the latest TELUS Health Mental Health Index, suggest financial wellbeing is becoming a wider workforce health and performance issue for UK employers, with money worries also linked to anxiety, disrupted sleep and lower motivation.

The research, based on a survey of 2,000 employed UK adults, found 32 per cent of workers experiencing financial stress reported anxiety, 29 per cent cited sleep disruption and 15 per cent reported reduced motivation and engagement. A further 12 per cent said financial pressure was affecting their relationships.

Managers and working parents were 70 per cent more likely to report that financial stress was affecting their productivity at work.

Financial insecurity also appears to increase the risk. Nearly a quarter of employees – 22 per cent, said they do not have emergency savings to cover basic needs. TELUS Health found workers without emergency savings were one and a half times more likely to experience reduced productivity than financially secure colleagues.

One in 10 UK employees said they are always anxious about money. This group recorded a mental health score 48 points below employees who said they never feel anxious about their finances.

The cost of living was the most commonly cited source of financial anxiety, identified by 62 per cent of employees, compared with 12 per cent who cited retirement savings and eight per cent who identified emergency savings.

However, the findings also point to differences across age groups. Workers aged more than 50 were two and a half times more likely than colleagues aged under 40 to identify retirement savings as their main financial concern.

The research comes as employer awareness over the relationship between financial wellbeing and wider workforce health is growing. Financial pressures can affect several areas, including mental health, sleep and engagement, suggesting financial wellbeing provision should not necessarily be treated separately from employers’ broader health, absence and productivity strategies.

Paula Allen, global leader, research and insights at TELUS Health, said: “Financial stress is no longer a personal worry employees can leave at the door. The data shows just how deeply financial pressure is shaping the mental health of today’s workforce, and the impact it has on productivity in the workplace when not addressed. When one in 10 employees live in a constant state of financial anxiety, the effects show up in sleep, relationships, and inevitably, the quality of work. Treating financial wellbeing as a peripheral issue is not an option. Employers may not be able to solve the cost-of-living crisis and generational concerns, but organisations that invest in meaningful support, such as financial wellbeing programmes, or proactive mental health resources, will be better positioned to protect both their people and business performance.”

The TELUS Health Mental Health Index UK Q2 2026 was based on a survey of 2,000 employed adults conducted between 5 and 18 June 2026.