Zarah Choudhary78% of employees remain concerned about the cost of living, according to the Britain at Work Report 2025 published by Health Shield Friendly Society.
The Britain at Work Report 2025 was conducted by Health Shield Friendly Society, a not-for-profit employee benefits provider serving over 445,000 members and 4,500 organisations.
Despite a decline in inflation and a rise in wages since the peak of the crisis, the report found that the impact of the cost-of-living squeeze is ongoing and continues to affect individuals and workplaces.
The annual survey, which gathered responses from 975 working adults in December 2024, revealed that 45% of employees are more or much more worried about the cost of living than they were a year ago.
While overall anxiety has decreased slightly from 89% in 2023, 28% of respondents said they are still very worried.
More than half (54%) of employees reported that the cost of living has impacted their ability to do their job.
16% admitted to skipping work due to financial pressures.
On average, employees took six days off work due to illness in 2024, with four of those days attributed to mental health.
Despite these concerns, only 46% of employees said they would tell their employer if they were struggling financially.
Just 49% believe their employer cares about the impact of the cost of living.
Among women, only 41% said they would disclose financial difficulties to their employer.
The report also found that 68% of employees worry about money at least weekly.
33% said they worry every day.
Among women, 39% worried daily about money, compared to 27% of men.
Worry levels also varied by income, with one in two employees earning less than £25,000 reporting daily financial anxiety, compared to one in three earning between £25,000 and £39,999, and one in four earning over £40,000.
When asked about specific concerns, three-quarters of employees cited rising utility bills, while 69% were concerned about rising food prices.
62% reported that not knowing when the cost-of-living squeeze would end contributed to their anxiety, and 44% said they feared losing their job.
The report highlighted that 76% of employees had reduced spending on routine healthcare such as dental and optical check-ups.
41% had skipped or planned to skip meals, while many said they had cancelled holidays, family days out, or social engagements.
38% said they had opted to work from home to reduce costs.
