How the cost-of-living crisis affects employee health and wellbeing
The cost-of-living crisis has been detrimental to the UK for quite some time now, affecting more than just our finances. It has had a negative impact on our food, our physical health, and our mental health.
With such a huge increase in the cost of necessities such as gas, electricity, food etc, it has meant that many families across the UK are struggling. Many can’t afford nutritious meals, or meals at all, which is a major crisis. Statistics show that in 2024 so far, 15% of UK households went hungry and nearly 60% of food-insecure households cut back on buying fruit and 44% bought less vegetables.
Due to this, the NHS have recorded seeing an increase in hospital admissions for poor nutrition and deficiencies. The NHS Trust’s data found that 96% say that health has worsened in local areas as a result of poverty and the cost-of-living crisis. This in-turn takes a huge toll on people around the UK mentally, as their stress and anxiety levels go up over not having food or being able to afford bills. It can cause low moods, lower self-esteem, guilt, and sleep problems, which all contribute to poor and further declining mental health.
Why the cost-of-living crisis is a workplace issue
Poor mental and physical health affects how people function in the workplace if they attend work at all. Many employees’ struggling won’t be able to focus, their productivity will be lower, relationships with colleagues may deteriorate, there will be less staff engagement or morale, and absences or long-term sickness may be increased. These things will negatively impact a business’ overall productivity and finances. If there’s a lower productivity rate and more absences, it costs an organisation a lot of money; in 2020 it cost the UK economy £21 billion and if nothing changes, its predicted to cost the UK £26 billion.
What employers need to know about absence and productivity costs
Workplace absence isn’t just a people issue, it’s a financial one. Staff shortages lead to reduced output, higher pressure on remaining staff, and potentially lost contracts or customers. When combined with the rising effects of the cost-of-living crisis, employers face an even bigger challenge in maintaining a healthy, productive workforce.
How Occupational Health services support employees
Employees having access to Occupational Health can massively improve attendance, reduce sickness costs, and provide vital support for staff struggling with poor mental or physical health. By working with occupational health nurses and practitioners, employees can get help, reassurance, and reasonable adjustments at work that enable them to perform at their best.
This doesn’t just support employees who are already struggling - it also provides businesses with early interventions and preventative strategies to protect staff wellbeing before issues escalate.
Can Occupational Health reduce absenteeism and long-term sick leave?
Yes. By providing access to professional health support, staff are more likely to stay in work or return from sick leave more quickly. With proper adjustments in place, employees can feel confident, supported, and capable of working safely and effectively, reducing the cycle of absence and long-term leave.
Preventative wellbeing strategies for businesses facing the cost-of-living crisis
Occupational Health isn’t just reactive—it’s preventative. Employers can use OH to build resilience into their workforce through:
