Just 15 per cent of UK organisations have a financial wellbeing strategy 

Only 15 per cent of UK organisations have a formal financial wellbeing policy or strategy in place, despite mounting evidence that money worries are affecting performance, absence and engagement at work. 

That is one of the headline findings from the CIPD Reward survey: Focus on employee benefits, supported by Everywhen.  The research, based on responses from 1,059 HR and reward decision-makers, paints a mixed picture of how UK employers are using benefits to support workforce health, resilience and productivity. 

While 77 per cent of organisations say they have objectives for their employee benefits package, 22 per cent have none at all. Even among those with objectives, fewer than a third (31 per cent) link benefits to improving productivity or business performance, and just 23 per cent connect them explicitly to improving employee health and wellbeing. 

Instead, benefits are more commonly aimed at retention (44 per cent) and increasing motivation and engagement (37 per cent). For workplace health and wellbeing leaders, this signals a disconnect. If benefits are not clearly aligned to performance, health outcomes and organisational strategy, they risk becoming a cost centre rather than a lever for better work. 

Flexible working gap 

The report also highlights a significant gap between what employers say matters and what they actually provide. Among organisations with clear benefits objectives, 75 per cent say flexible working helps them achieve those objectives. Yet only 40 per cent of all employers surveyed actually offer flexible working as a formal benefit. This gap has direct implications for UK workplace health and wellbeing. Flexible working is consistently associated with improved mental health, reduced stress and better work–life balance. Where it is absent, employers may be missing a low-cost, high-impact intervention. 

Financial wellbeing still not embedded 

Financial stress remains a major risk to employee wellbeing and performance. Yet only 15 per cent of organisations have a formal financial wellbeing policy or strategy in place.  

Among those that do, the motivations are clear: 

• 43 per cent say it is to improve overall mental and physical wellbeing 

• 43 per cent say it is to improve organisational and employee performance 

• 39 per cent say it is to reduce employee stress levels 

However, among employers without a strategy, 29 per cent say creating one is not a priority right now, and 25 per cent cite a lack of time, money or expertise. 

The report also finds that only 39 per cent of organisations feel a responsibility to signpost employees to financial information or guidance. This reluctance may limit employees’ ability to build financial resilience at a time of ongoing cost-of-living pressures. 

For UK employers, the implications are significant. CIPD research cited in the report shows that money worries reduce employee effectiveness, contributing to both absenteeism and presenteeism. Financial wellbeing is therefore not a peripheral issue but a core workplace health and productivity concern. 

The data reveals a clear divide between large employers and SMEs. 

Larger organisations are more likely to: 

• Offer occupational sick pay and private medical insurance 

• Provide employee assistance programmes 

• Review benefits against clear objectives 

• Express confidence in navigating and communicating benefits 

They are also more likely to have, or plan to introduce, a formal financial wellbeing strategy. 

By contrast, SMEs are less likely to have defined objectives for benefits and less likely to assess whether those benefits are delivering value. 

This raises questions for the wider UK workplace health and wellbeing ecosystem. If smaller employers lack the resource or expertise to design purposeful benefits strategies, there may be a growing gap in workforce protection between large corporates and smaller businesses. 

Cost pressures shaping 2026 

Looking ahead, 73 per cent of organisations plan to keep the number of benefits they offer the same through 2026. UK economic uncertainty (47 per cent) and rising employment costs (45 per cent) are cited as the biggest factors likely to impact benefits provision over the next 12 months. 

For wellbeing professionals, this suggests a shift from expansion to optimisation. Employers may not add new benefits, but there is clear opportunity to redesign, refocus and better align existing provision with health, performance and retention outcomes. 

The CIPD concludes that while many organisations invest significant time and money in employee benefits, too few use them strategically to drive productivity, health and long-term workforce resilience. 

For UK workplace health and wellbeing leaders, the message is clear: benefits must move beyond perks. When aligned to clear objectives and regularly reviewed, they can support mental health, reduce financial stress, improve retention and strengthen organisational performance. 

In a climate of economic pressure and rising health concerns, that alignment may prove critical to building healthier, more sustainable workplaces.