Connect

Financial wellbeing starts here

If improving your finances is your New Year’s Resolution, you’re not alone. 

YouGov data shows that saving money and spending less is the most common goal for Brits in 2025 – a clear sign of the pressure many feel as living costs continue to rise.

In fact, research from the workplace finance platform Neyber found that over 50% of UK employees regularly borrow to cover everyday expenses and bills. 

In this month’s Connect, we’re diving into financial wellbeing. We’ll examine why it’s such an urgent issue, explore the stigma that prevents people from seeking help, and share practical steps to help manage your money better. 

By numbers: The state of our finances

1 in 4 UK adults have less than £100 in savings

(Source: Fair By Design)

The stat above shows how tight finances are for many people – and it’s not just the poorest in society who are struggling: 

• The average UK adult has accumulated £1,333 in credit card debt
  (Source: The Money Charity)

• 1 in 3 middle-class people couldn’t pay an unexpected £500 bill without borrowing  (Source: YouGov)

• The price of budget food in supermarkets rose by 17% in the year to September 2022, with vegetable oil going up 65%  (Source: ONS)

• 3 million adults reported not eating for an entire day because they couldn't afford food (Source: Food Foundation)

• 54% of people in poverty live in a family where at least one adult is in work (Source: Department for Work and Pensions)

Explainer: Why is financial wellbeing such an urgent issue? 

The UK’s money problems started long before COVID-19. Since the
mid-2000s: 

• Wages have stagnated, rising just 9% between 2008 and 2015 

• Living costs have surged, with essential items increasing by 28% in the same period 

• Housing costs soared, with rents and mortgages up 10% in a single year (2015) 

• Easy access to credit has left many people in serious debt 

• Insecure employment, including zero-hours contracts, has become more widespread 

Financial pressures affect more than just our wallets – they take a toll on wellbeing and productivity, too:

• Three out of five Brits (60%) say the cost-of-living crisis has negatively impacted their mental health (Source: Kings College London) 

• 20% of people struggling to pay bills report low life satisfaction, compared to only 7% of those who found making payments easy
  (Source: ONS) 

• One in four employees say that financial concerns have affected their ability to do their job (Source: CIPD) 

Guide: 5 tips for healthier finances 

Even though some challenges are beyond our control, there are steps you can take to work toward financial stability: 

1. Create a budget

Use a tool like our budget planner to take control of your finances. The 50-30-20 rule can be a useful method to stick to: allocate 50% of your income to needs, 30% to wants, and 20% to savings or debt repayment.

2. Curb those impulsive purchases

Online shopping, in particular, can be tempting – Brits are among the world’s biggest online spenders. Pause for 24 hours before buying non-essentials. When shopping in person, stick to a list (and avoid grocery shopping when hungry!) 

3. Explore ways to increase your income

This could include applying for benefits you might have missed (use our benefits calculator) or checking your tax code to ensure it’s correct. Try these tips from StepChange.

4. Prioritise debt

Paying off debt lowers interest costs and improves financial freedom. Consider 0% balance transfers to manage credit card debt or try the snowball method – paying off smaller debts first to build motivation and momentum.

5. Get expert help

Financial wellbeing is a journey, and professional guidance can make all the difference. StepChange and MoneyHelper offer free, impartial advice to help you move forward with confidence. 

Insights from our community

Support without shame

The stigma around money problems is one of the biggest barriers to seeking help. Talking about finances still feels taboo, and many people don’t realise that others are struggling – just like them.

For those working in banks, the stigma can feel even greater, with an external perception that they should naturally be 'good with money.' This can create added pressure, especially for people in regulated roles or those subject to financial checks, making it even harder to seek support.

We’ve seen how these challenges hold people back from asking for help, even when they need it most. By encouraging open conversations about financial struggles, we can reduce shame and make it easier for people to get the support they need.

Did you know?

More than half of UK adults (57%) don’t have a will (Source: Canada Life)

That figure includes one in three over the age of 55. Without a will, you could leave your loved ones facing unnecessary financial stress. It’s an important step to take, and it doesn’t have to be expensive. 

If you’re writing a will, consider leaving a legacy to Bank Workers Charity (after providing for loved ones, of course). It can make a lasting impact on the banking community. 

Plus, from 6 April 2027, unused pension savings may be subject to Inheritance Tax; leaving a gift to charity can help reduce this liability.

Click below to find out more about this and other ways to support us.

Useful resources

Need more help? Visit our Money guide for helpful advice on benefits and grants, debt management, bankruptcy and budgeting. And try these services, which provide specialist information and support: 

• Stepchange: Visit the charity’s website for free, confidential debt advice as well as helpful online budgeting tools and guides 

• Money Helper: Access free, impartial guidance on managing money, from budgeting and saving to debt and pensions 

• National Debtline: If you’re struggling with debt, call 0808 800 4000 for advice 

• Money Saving Expert: Martin Lewis’s site offers up-to-date advice on saving money, cutting costs, and managing your finances

• Trussell Trust: Offer emergency food and support for those facing financial hardship – call 0808 208 2138