Jessica O'ConnorNew data from Pepper Money’s Specialist Lending Study 2025/26 found that financial stress is now a significant drag on the labour market, with an estimated 2.05 million workers missing at least one day of work in the past year due to money-related pressures.
The study calculated this has led to 8.4 million lost working days, costing the UK economy around £860m in reduced output.
The findings, based on a survey of 4,000 adults, come shortly after the Government published its National Financial Inclusion Strategy, which identifies mental health as a core pillar of financial resilience.
The new analysis suggested financial pressures are already affecting workforce participation and productivity at scale.
More than a third of UK adults (37%) reported having experienced substantial financial stress in the last three years, and one in three (33%) say their current financial situation is harming their mental health.
Regional disparities were clear, with the highest levels of anxiety recorded in London (38%), the North East (36%), and the North West and Midlands (both 35%).
Concerns about the wider economic climate were also influencing behaviour, with 56% of UK adults reporting that they worry about their finances as a direct result of current economic conditions.
Londoners appear to be shouldering the greatest burden.
According to the survey, 11% of workers in the capital have missed work due to financial pressure, nearly double the UK average of 6%.
London also has the highest proportion of adults worried about their economic position (61%), followed by the West Midlands and the North East (both 60%).
Paul Adams, sales director at Pepper Money, said: “Financial stress is now having a measurable impact on the UK economy.
“With more than two million people missing work due to money pressures, the scale of lost productivity is a cause for concern.
“The human impact behind these numbers is just as stark. A fifth of UK adults are now reporting significant financial stress, and many are struggling with the mental and emotional toll this creates.”
He concluded: “As households face increasing complexity in their financial lives and a difficult cost of living landscape, independent advice has never been more vital.
“People need clear guidance, empathetic support and more inclusive lending options to help regain control and maintain stability.”
