Health & Wellbeing
Cost of living series: a mental health crisis
Money and mental health—at first glance, you might not consider the link. But when we look closely, we can see just how interwoven the two really are. So with that in mind, we should be hearing alarm bells on multiple levels when we consider the impact of the cost-of-living crisis.
This crisis will impact mental health in terms of treatment, increased external stressors, job insecurity and more; there’s a real threat on the horizon that we can’t ignore.
So in this article, we’ll check in on how people across the UK are currently feeling. Then we’ll look in more detail at the different areas that will be affected.
The statistics tell a story
Emerging research shows that the effects of the cost-of-living crisis are already starting to show.
- 78% of people say that the cost-of-living crisis is impacting their mental health (this rises to 94% for those with pre-existing mental health conditions) ¹.
- 25% of people can’t afford social activities that help them stay mentally well¹.
- 25% of people are having to work longer hours due to the rising cost of living so have less free time¹.
- 18% can’t afford to travel to their usual support networks in communities¹.
- 66% of therapists say cost of living concerns are causing a decline in people's mental health².
- 60% of therapists have seen clients cutting back on therapy sessions due to money worries².
- Almost half (47%) of therapists report clients are cancelling or pausing sessions because they can no longer afford them².
The cost-of-living crisis is already making its mark on mental health in many ways. It’s a layered effect that has the potential to compound over time—we’ll look at each of these layers in more detail below.
For more information see our article What is Financial Wellbeing
The baseline: financial concerns
The cost of necessities we need is rising fast, and we’re continually exposed to the cost-of-living crisis on some level, whether it's feeling pangs of anxiety after seeing your energy bills, worrying about fuel costs or reducing your food shopping down to all you can afford.
These subtle experiences can accumulate over time, creating worry, anxiety and uncertainty about what the future holds. Increases in any of these emotions can lead to cycles of unhelpful thinking habits, sleepless nights and poor food choices. And once you begin to tread this path, it can be hard to get out of.
These financial concerns will be even more severe for those in financial hardship or debt. If you're having concerns about putting food on the table, having enough money for bills or travelling to work, these situations can be really difficult to deal with. If you're struggling to cope, reach out to Step Change for support.
The ripple effect
Not only is the cost-of-living crisis causing financial worries, but it’s also impacting people’s ability to access support networks and take part in activities that are vital to maintaining good mental wellbeing. We know that good mental health is derived from consistently:
- Doing things that you enjoy
- Maintaining good relationships
- Eating a healthy nutritional diet
- Having things to look forward to
- Maintaining a good sleep schedule
- Having a good work-life balance
Yet for many people, the cost-of-living crisis is having some impact at each of these levels—we'll look at these more closely below.
The threat of burnout
The statistics above highlight that one in four people are currently working longer hours to compensate for rapidly rising inflation rates. Yet stress is a big threat to those working long hours, and this additional stress can lead to physical, mental and emotional exhaustion—often known as burnout.
Burnout causes symptoms like self-doubt, feelings of helplessness and a negative outlook. If you've ever experienced burnout, you'll know it can take a while to recover from, and sometimes time off work is required, which might lead to further financial concerns.
While some will have no choice but to pick up extra hours in a bid to pay the bills, it’s important not to add too much pressure on yourself and still make time for rest.
Accessing mental health support
Therapists have already started to see that the cost-of-living crisis is causing people to cut back on accessing their services. Paying privately for mental healthcare can be expensive, so understandably, it’s an area many need to sacrifice.
Mental health support should never be a nice to have. But bills must come first and sometimes there are no other options.
But the fact remains that this will have serious implications for those people who rely on this support to maintain a good sense of wellbeing.
Socialising and activities
Maintaining good social connections is highly important for mental health. We are social creatures—and must keep up those bonds that prevent loneliness and isolation.
The stats show that people are already having to cut back on socialising and activities that connect them with others. These limitations might make it difficult for some groups to meet up like they usually do.
We can also see that almost 20% are struggling to visit people in their network who they would usually support. The breakdown of social connections in this way could have worrying implications for mental health.
This reduction in leisure spend also puts additional financial pressure on businesses, with two-thirds of business owners noting that their customers may no longer be able to afford their products or services, alongside the already rising cost of running a business due to the cost of fuel and energy³.
A negative news cycle
It’s good to stay connected. But there is currently a lot of external noise around the cost-of-living crisis, from stories of people living on minimal meals to an increase in homelessness and students struggling to make ends meet to families going cold, unable to afford their energy bills.
Consistent exposure to these negative news stories can increase fear, sadness and anxiety⁴. It can also intensify the stressful situations occurring in your own life and lead you to repetitively check the news. Psychologists note that we’re wired to look for threats and negativity, so checking the news repeatedly can trick us into feeling more prepared. But in the long run, this frequent monitoring can lead to cynicism and hopelessness⁵.
So remember to consume your news wisely and from good sources!
Now we’ve covered some of the ways the cost-of-living crisis is affecting mental health. So in our final article of the cost of living series, we’ll be looking at how you can support yourself and others through this time.
Socialising and activities
Maintaining good social connections is highly important for mental health. We are social creatures, and we need to maintain those communities that prevent loneliness and isolation.
The stats show that already people are having to cut back on socialising and activities that connect them with others. This also puts additional financial pressure on businesses, with two-thirds of business owners noting that their customers may no longer be able to afford their products or services, alongside the already rising cost of running a business due to the cost of fuel and energy³.
A negative news cycle
It’s good to stay connected. But there is currently a lot of external noise around the cost-of-living crisis. From stories of people who are living on minimal meals to an increase in homelessness and students struggling to families going cold, unable to afford their energy bills.
Consistent exposure to these kinds of negative news stories can increase levels of fear, sadness and anxiety⁴. It can intensify the stressful situations occurring in your own life and it can lead you to repetitively checking of the news. Psychologists note that we’re wired to look for threats and negativity, and so checking the news repeatedly can trick us into feeling more prepared. But in the long run, this frequent monitoring can lead to cynicism and hopelessness⁵.
So remember to consume your news wisely and from good sources!
Support your employees with an EAP
With a Health Assured Employee Assistance Programme (EAP), we can offer you practical advice and support when it comes to dealing with workplace stress and anxiety issues.
Our EAP service provides guidance and supports your employees with their mental health in the workplace and at home. We can help you create a safe, productive workspace that supports all.