Debt Awareness Week: Breaking the Stigma

Debt Awareness Week is a crucial time to shed light on the financial challenges faced by individuals across the UK.

This year’s topic is a powerful reminder that debt is not a personal failing, nor something to be ashamed of. Yet, for many, it remains a taboo topic, one that people struggle to talk about openly, even when they need help the most.

Debt in the UK: The Reality

Debt in the UK: The Reality The statistics paint a stark picture. Over 8.5 million people in the UK are struggling with problem debt, and one in four adults feel anxious about their financial situation (StepChange, 2024).

Younger generations are among the most affected, often due to a lack of financial education. Research shows that nearly half of students (49%) report experiencing financial difficulties, with 16% saying they are in major financial trouble (ONS, 2023).

With the rising cost of living, many young people turn to unreliable sources for financial advice, leading to poor decisions that trap them in cycles of debt. This younger generation is also your future workforce, meaning their financial struggles today could impact employee wellbeing, productivity, and retention in the years to come.

However, debt doesn’t discriminate. It can affect anyone, regardless of age, background, or income. Unexpected expenses, changes in employment, or simply not having had the right financial education early on can leave people struggling to make ends meet. That’s why it’s time to remove the stigma and start open, supportive conversations about financial wellbeing.

The Workplace Impact of Financial Stress

Debt isn’t just a personal issue; it’s a workplace issue too. Employees dealing with financial stress are more likely to experience:

• Lower productivity – Money worries can be a major distraction, reducing focus and efficiency at work.
• Increased absenteeism – Employees struggling with financial issues may take more sick days or unpaid leave.
• Higher turnover – Financial insecurity can push employees to look for alternative employment, impacting staff retention.

For HR professionals and business leaders, this presents an opportunity to take action. Creating a workplace culture where financial wellbeing is prioritised is strategic move that benefits both employees and employers alike.

Why HR Leaders Should Provide A Financial Wellbeing Benefit

Providing financial education and support within your employee benefits package can make a significant difference. We help businesses implement financial wellbeing initiatives that empower employees to take control of their finances.

No Judgement, Just Support

Debt Awareness Week reminds us that no one should feel ashamed of their financial struggles. The more we talk about money, the more we can break the stigma and encourage people to seek the help they need.

While we don’t offer debt advice, we can help employees take control of their financial future and connect them with trusted resources. If you or your team need support, please reach out to a member of our team – we’re here to help.

Let’s work together to create a judgement-free workplace where financial wellbeing is a priority for all.