Survey of UK employees reveals 63% are borrowing to meet basic financial needs

A new survey of 10,000 employees across the UK highlights that more than three in five (63%) have borrowed for basic financial needs in the last year with the most common method of borrowing being credit card, borrowing from savings or from family and friends.

The survey shows that the weight of money worries and concerns is having a significant impact on people’s everyday lives as well as their behaviour at work. 52% of those surveyed felt that this financial pressure was impacting their job performance and 53% on their ability to manage money effectively. Almost half of UK employees (49%) say they don’t have financial confidence.

Almost three in four (74%) of employees feel stress, and of those people, over 75% said it was due to financial or work-related pressures.

Other key findings in the report are:

• 56% experienced financial difficulty over the last year, compared to 53% in 2023
• Levels of financial confidence are lower for those in rental properties, where three in five (60%) don’t feel confident in their everyday money.
• More than two in five (43%) told us that they had spent part of their working day addressing personal issues in the last twelve months, with just under two in five (37%) taking time off work for personal reasons.
• 73% of employees surveyed with neurodiverse needs say they don’t feel confident dealing with their finances.

When it comes to workplace benefits, pensions and flexible benefits lead the way in terms of value for employees. However, over the last five years, most benefits have seen an increase in value placed by members, such as:

• Financial education is growing in value from 46% in 2020 to 57% in 2024
• Retail discounts are growing in value from 57% in 2020 to 65% in 2024
• Mental health support is growing in value from 42% in 2020 to 60% in 2024
• Employee Assistance Programmes growing in value from 39% in 2020 to 54% in 2024.

Heidi Allan, Principal at LCP and report author, commented: “The cost of living in the UK is finally stabilising, but financial confidence is still low for many people. Employers have a crucial role to play in supporting their staff during these times ensuring that their teams have the training and resources to keep up. Building financial confidence in employees is vital as it’s clear that it impacts people’s productivity and general wellbeing.”