A survey of local government employees has found that 72% are financially vulnerable, meaning a single unexpected cost could tip them into crisis.
The poll of 500 anonymous council employees by My Money Matters, a financial wellbeing platform for public sector employers, also found a third have less than £500 in savings.
The financial strain is affecting work as well as home life: half of respondents said money worries cost them sleep or concentration, and 40% said it had hit their performance directly. One public sector HR professional described it as a problem that has ‘been this way for over 25 years.’
Among HR professionals, 87% say financial stress disrupts workplace productivity, and 56% say it has grown over the last year.
‘This isn't a personal problem employees should manage in their own time. It's a workplace issue, with workplace consequences, that requires a workplace response,’ the HR professional told My Money Matters.
The survey also found that 57% of employees don't engage with the financial benefits available to them through their employer because most won't seek help until they're already in crisis.
My Money Matters CEO Amar Mistry said the barrier is ‘shame,’ not a lack of willingness to seek help.
