Health providers, councils, and employers all need to get better at making the connections between financial insecurity, the cost of living and ill health, two reports have argued.
The Royal Society for Public Health (RSPH) has highlighted the links between financial insecurity and health and wellbeing in a research report commissioned by Hull City Council.
This has argued that the cost-of-living crisis has had substantial effects on individuals and their families, particularly among those living with and/or with someone who has health conditions or impairments.
The rising cost of living has affected individuals directly in terms of food and fuel affordability, meaning people are struggling to afford necessities that are vital in maintaining health and wellbeing, it said.
As one respondent to the study put it: “My partner and child have asthma, so waking up cold indoors and forever breathing in cold air has affected them and me as well. It is impacting us on the long term because you don’t have the heating turned on as you would.”
Cost-of-living crisis
Women under more financial stress from cost-of-living crisis
Another said: “Our mobility goes down because we are using our money on bills to try keep electrics and gas going. We don’t visit the doctor as much as we should because I can’t use public transport, my partner can’t use it on their own because they can’t see and I don’t have a working wheelchair anymore, so all these things keep impacting.”
The case study-based report has called for the development of more preventative approaches to financial inclusion, so ensuring people can be supported before they reach crisis point.
At the same time, councils can get better at linking up health and care partners to explore the impact of financial difficulty and acknowledge the links between poverty and health, it recommended.
The development of targeted interventions that reflect the needs of groups who experience inequalities, including people from ethnic minority backgrounds, carers, and people living with health conditions, can also help.
Finally, the RSPH has recommended organisations take a whole-system approach to tackling financial insecurity, so recognising this can significantly affect health and wellbeing as well.
Different perceptions of financial wellbeing support
Separately, a research paper from financial wellbeing platform Bippit has highlighted the need for employers to better understand how financial insecurity is affecting their employees.
The study has concluded there are often massive gaps in employee versus employer perceptions of financial wellbeing support.
More than a quarter (29%) of 5,000 UK employees polled said they received zero financial wellbeing support at all from their employer.
Yet every single one of the 660 senior HR professionals also surveyed said their organisation provided such support.
Of those employees who said they did not get any support, more than two-thirds (68%) said they were as a result unwilling to share money worries with their employer.
However, this dropped to just 36% among those who said they did receive financial wellbeing support.
A further significant disconnect was highlighted in the finding that 84% of HR professionals polled said they provided an environment that encouraged employees to share money worries.
Yet this view was shared by just half (52%) of the employees polled in the report, Dynamics in Financial Wellbeing: The Stigma Edition 2023.
And, while 84% of the senior HR professionals said their organisation had asked their staff how they were doing with money in the last three years, just 41% of employees agreed this was something they had experienced.
Overall, just under half (48%) of employees were comfortable talking about money issues. This was even lower than the 52% who said they would rather talk about mental health issues with their employer.
The problem was most acute at opposite ends of the age spectrum. Nearly three-quarters (74%) of over-55s and 70% of 18- to 25-year-olds said would not confide in their employer, compared with 58% across all ages.
More than double the number of women (50%) as men (21%) said they were not comfortable sharing money worries in the workplace.
Sam Lathey, CEO of Bippit, said: “Now that the driving forces of workplace money stigma have shifted from internal feelings of shame and embarrassment to an uncertainty over how employers can help, the onus is on organisations to ensure their wellbeing comms and engagement strategies reflect this change.
“Accordingly, employers need to focus on helping employees understand how their benefits can support their financial wellbeing and reduce stress.”
Andrew Berrie, head of workplace wellbeing at mental health charity Mind, said the research showed that, while stigma around financial concerns is reducing, there is still a way to go.
“Having a sense of control of your personal finances is a key step in addressing feelings of worry or anxiety. Educational programmes around budgeting, pensions and planning for retirement can be a great source of support,” he said.
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