Citizens Advice: Money and mental health

Author - Charlotte Johns

Date published: 13/12/22

As we face a winter of rising inflation, crippling price rises and uncertainty over the future of the economy, it is easy to focus on the physical implications of the cost of living crisis: hunger, cold and the symptoms that derive from them. However, there is a more insidious effect of the crisis – the impact on people’s mental health including your employees.

The link between social inequalities and health inequalities is well known, but in the past this was normally restricted to those on the lowest incomes. We are now seeing this expand further into the working population. The latest figures from Citizens Advice (1) tell us that the likelihood of an employee seeking crisis help is the same now as it was for unemployed people at the same time last year. Money and Mental Health report (2) that 73% of people have had to change how they live recently because of the changes. Energy price and mortgage repayment rises have regrettably moved people who may have been financially comfortable a few months ago into crisis, with a real impact on mental health. Two million people have already fallen out of a fixed rate mortgage into a variable rate, with many millions more to follow in the coming months.

The British Association of Counselling and Psychotherapy (3) reports that 66% of its members say cost of living concerns are impacting people’s mental health, with rising anxiety about household bills and over 50% of people losing sleep over money. Moreover, people are cutting back on the activities associated with improving mental health, such as gym memberships.

This can manifest itself in many ways (4): chronic stress and anxiety, insomnia, depression and exhaustion, especially if someone has taken on an extra job or excessive overtime to try to make ends meet. Sadly, in past events (5) such as the 2008 economic recession and during the Covid-19 pandemic, there was also a marked rise in attempted suicides, especially amongst middle aged men.

You may notice staff whose mood or behaviour has changed. There may be changes in the standard of their work, or the focus that they put on their job. They could be tired, anxious, withdrawn, or moody. You might see a change in appetite, or an increase in smoking or drinking. And, of course, there may be increased periods of absence, or turning up to work late.

All of these could point to someone who is facing challenges around mental health – what can employers do to support these staff?

Create an open environment where staff are able to speak about their wellbeing and mental health, without fear of judgement. It doesn’t have to be anything deep – just the space to share that they are feeling overwhelmed or not sleeping well could help.
Treat mental health and safety with the same importance as physical – training mental health first aiders, giving time for staff to attend mental health training and appointing mental health champions, to keep the issue at the forefront of the business’s mind.
Do what you can to reduce the transactional cost of working – what little things can change to make working less expensive? Simple things like providing tea and coffee rather than having a ‘tea fund’ can make a difference.
If you run an Employee Assistance programme that includes access to free mental health services, promote it’s usage. These services are traditionally underutilised and offer an independent source of support for staff.
Be mindful that all evidence points towards the issues caused by these financial pressures being worse for people with existing mental health issues, so if you have staff who have shared mental health issues in the past, you may want to keep an eye on them now.

Obviously this is a complex area, and staff who are experiencing problems with their money and their mental health may need specialist support from an advice agency like Citizens Advice. However, being vigilant and having a supportive workplace can be a great place to start.

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