How can employers support mental health during the cost of living crisis?
The UK’s cost of living crisis is starting to bite, with ONS figures revealing that 89% of British people are facing rising everyday costs.
The UK Government is taking steps to support the finances of the worst off, but there are growing concerns that it isn’t doing enough to tackle what has been described as a “potential nationwide mental-health epidemic”.
Financial and mental health have always been linked. When countries slide into recession and living standards start to fall, reports of mental health problems tend to increase. A number of leading charities including Mind and the Samaritans have written to the Prime Minister with an urgent warning. The letter states:
“We know from previous experience that a squeeze on living standards, unmanageable debt and economic recessions cause a rise in mental health problems, demand for services and are, sadly, connected to a rise in suicides. We have the opportunity to learn from the past and address how to support people’s wellbeing to avoid repeating history.”
There are already worrying signs starting to emerge. A recent survey from the Money and Mental Health Policy Institute revealed that 59% of people believe that the cost of living crisis is having a negative effect on their mental health. Around 25% people felt financial pressures so acutely that they described themselves as “unable to cope”.
What can employers do to help?
Employers can play a key role in supporting the mental health of their staff as they deal with the cost of living crisis.
Some companies are already implementing measures, such as giving low-paid staff a one-off bonus to help them through the winter months. This includes digital bank Monzo, who are issuing a £1,000 payment to employees who earn less than £40,000 a year. Other companies offering ‘cost of living bonuses’ include Virgin Money, Lloyds Bank and the Financial Times.
But supporting employees effectively requires more than just a one-off bonus to cover bills or other expenses. Let’s take a look at some of the key measures that employers can use to support both the mental and financial health of their teams:
- Make sure all staff are paid at least the living wage
- Offer workplace adjustments like flexible hours
- Make it easier to access benefits such as hardship loans, cycle-to-work schemes and advice services
- Provide or signpost to counselling and other professional mental health support
- Offer access to educational programmes related to pensions, retirement planning and budgeting
- Foster a culture of support, openness and trust, where employees feel comfortable and safe to discuss mental health problems.
Helen Undy, the chief executive of the Money and Mental Health Policy Institute, has some further advice for organisations:
“Businesses should routinely signpost helpful services like debt advice and mental health support, and ensure that managers have practical training in mental health to support staff who might be struggling.”
If you’re hiring or searching for a new role in 2023, get in touch with our specialist recruitment team here at Exchange Street.