To mark the UK’s Mental Health Awareness Week (13th-19th May), leading financial wellbeing business, Loqbox, has released findings revealing the ramifications of the ongoing cost-of-living crisis on people’s mental health.
Extending far beyond mere economic strain, Loqbox’s new study has found that the relentless pressure of financial instability has a clear and significant impact on emotional and mental wellbeing. These findings not only shed light on the magnitude of the issue but also highlight the urgent need for comprehensive interventions and systemic reforms to safeguard the mental resilience of communities amid turbulent economic tides.
Alarmingly, the survey found that 75% of people across the UK have experienced emotional distress over the past year due to financial worries. A startling 64% of all survey respondents state that fears of financial difficulties have impacted their sleep patterns, causing difficulty falling or staying asleep, and 57% state that financial worries have led to arguments or conflict with friends, family, and loved ones.
Responses were also varied dependent on the gender and age group of respondents:
When asked whether they had experienced emotional distress in the last year due to their financial situation, 73% of males and 76% of females reported such occurrences. Respondents experienced anxiousness and being overwhelmed due to this. At 83%, males aged 18-24 were the most impacted demographic of those surveyed followed by 80% of males aged 25-34. Among females, those aged 25-34 were the highest demographic (83%), followed by 74% in the 35-44 age bracket.
Overall, 64% of all respondents stated that financial worries had disrupted their sleep patterns or had caused difficulty in falling or staying asleep. Among males, the 18-24 age group stood out as the most affected, with 71% experiencing sleep disruption, while females aged 25-35 reported the highest impact at 72%.
Furthermore, 57% of respondents confirmed that their finances had led to conflict or arguments with friends, family or loved ones over the past year, but this figure was higher for males (61%) than females (53%). Those in the 25-34 age bracket emerged as the highest demographic, with 71% of males and 63% of females acknowledging these conflicts.
Loqbox’s survey findings align with conclusions drawn by the Money and Mental Health Policy Institute which found a strong correlation between money problems and mental health issues. According to its research, 86% of individuals facing mental health challenges said that their financial situation exacerbated their problems.
Gregor Mowat, Co-Founder and Co-CEO of Loqbox, and member of Business in the Community’s Cost of Living Crisis Taskforce, commented: “During Mental Health Awareness Week, it’s crucial to acknowledge the significant impact that financial worries can have on people’s mental health. Our study reveals the harsh reality faced by many individuals in the UK, with a staggering three-quarters reporting experiences of emotional distress due to financial pressure in the past year amidst the cost-of-living crisis.
“While these findings may be difficult to digest, they serve as a reminder that individuals are not alone in their struggles – and hopefully they can act as a catalyst for change. It’s imperative for people to confront financial issues head-on; neglecting them and burying your head in the sand only exacerbates the toll on mental and physical health. Whereas prioritising financial stability and taking proactive steps to alleviate debt can directly enhance mental health.
“There are now several resources available to help individuals navigate financial challenges. Whether it’s budgeting tools for those struggling to manage finances or savings assistance for those looking to build a nest egg, the key is to take action now to shape a brighter future. By equipping themselves with the right tools, resources, and support, individuals can reclaim control over their finances, alleviate anxiety, and foster a positive mental outlook. This is why Loqbox exists – to empower individuals to feel more confident about their financial situation, confront challenges with resilience, and ultimately achieve financial freedom.”
Loqbox is a financial wellbeing business on a mission to give everyone access to a richer life. It offers a range of innovative personal finance tools aimed at empowering individuals to enhance their credit histories, access financial opportunities and enjoy a happier, healthier relationship with money.
Research into Loqbox members reveal compelling statistics: a staggering 9 out of 10 members stated that taking charge of their finances has positively impacted other areas of their lives, with 63% of members mentioning reduced stress, and 50% stating that their mental health has improved. Since joining Loqbox, 80% of its members feel more motivated, confident, and in control of their finances.
Today, Loqbox has empowered more than two million people to take control of their finances while they save and build their credit score with the UK’s three main credit reference agencies: Equifax, Experian and TransUnion. In 2023 alone, it welcomed over 430,000 new members.
Whether they’re struggling to save, have poor credit histories, or simply want to learn more about how the financial system works, Loqbox provides people with the knowledge, confidence, and tools to reach their financial goals and feel better about money.
For more information about Loqbox, visit: https://www.loqbox.com/en-gb.
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