With Debt Awareness Week (16-22 March) sparking important conversations about financial difficulty, now is a timely moment to reflect on how debt is affecting people at work and the role employers can play to address the issue.
Personal debt is affecting millions of UK adults, and its consequences are being felt across organisations of every size. 1 in 2 adults say they have experienced problem debt at some point, yet many struggle in silence. According to StepChange, 44% of those affected tell no one about their situation.
Recent figures from Debt Justice and Energy UK highlight the scale of the issue. More than four million people are behind on their council tax, and household energy debt has reached £5.5 billion. Behind these numbers are employees showing up to work, supporting customers and managing teams, while dealing with financial pressures that affect focus, wellbeing and performance.
The silent struggle
Conversations about debt are difficult: for those experiencing it and for those trying to help. Avoidance is easier than opening up, making debt particularly isolating.
Money is closely tied to identity, stability and success, from a personal and professional perspective. Debt can therefore feel like personal failure rather than a circumstantial challenge. Most people have never been taught how to talk openly about money; we tend to engage in financial conversations only when we have to, leaving many unsure how to seek or offer support.
Employees may fear judgement or professional consequences if they do speak up, while others simply don’t know what help is available or whether it applies to them. It is this combination of stigma and uncertainty that Debt Awareness Week seeks to address.
Government strategy and the role of employers
The UK Government has acknowledged debt and cost-of-living pressures as key economic challenges. In the 2025 Autumn Budget, the Chancellor announced support to reduce household energy bills, alongside consultation on reforming aggressive council tax debt collection practices and strengthening protections for households in hardship.
The Financial Inclusion Strategy, published by HM Treasury in 2025, aims to remove barriers to accessing essential financial products and services including banking, savings, insurance and affordable credit, while improving support for people in problem debt. It recognises that financial exclusion is rarely isolated, embedding considerations such as mental health, accessibility and economic abuse.
Importantly, the strategy identifies employers as key partners. Workplaces are seen as practical places to get real support to real people, including encouraging payroll-linked savings, expanding workplace financial education and engaging in a proposed National Coalition of Employers. The coalition is intended to bring together organisations committed to improving financial resilience, sharing best practice and increasing adoption of effective workplace savings and support mechanisms.
Complementing this, the UK Strategy for Financial Wellbeing, coordinated by the Money and Pensions Service, sets long-term goals to improve how people manage money throughout their lives. One headline ambition is to see two million more working-age people saving regularly, reducing reliance on credit and vulnerability to financial shocks. Employers are recognised as key enablers in achieving these outcomes.
Taken together, these frameworks make clear that financial resilience is not solely a matter for government or financial services. Workplaces are central to improving everyday money management and reducing financial stress.
What employers can do now
National strategy emphasises prevention over crisis response. For employers, that means building financial capability into everyday workplace infrastructure.
- Treat financial capability as a modern workplace skill
Practical, accessible education on budgeting, saving, understanding credit and knowing when to seek help supports national ambitions and reduces stigma when positioned as professional development rather than remedial support.
- Build savings into the system
Payroll-linked savings schemes, credit union partnerships or emergency savings models reduce friction and help employees build buffers that prevent debt escalation.
- Strengthen policies through a financial resilience lens
HR and payroll teams should review internal processes that directly affect cashflow, including overpayment recovery, hardship policies, deductions, expenses and pay transparency. Fair, clearly communicated processes demonstrate commitment to financial stability.
- Equip managers to respond confidently
Line managers are often the first to notice signs of financial stress but are not always given the tools or guidance to respond effectively. Providing guidance on how to start supportive conversations, alongside clear boundaries around regulated advice, supports early intervention.
- Partner with experts
Collaborate with regulated debt advice organisations, credit unions and reputable providers. Make better use of payroll and pension partners’ existing tools and expertise, and engage in peer networks to share practical learning.
In conclusion
Financial resilience is built in everyday environments, particularly the workplace. Employers have an opportunity to create conditions where financial difficulty can be addressed early, without stigma, and where stability is supported as part of working life.
Debt is rarely straightforward. It is shaped by personal circumstances, family responsibilities, unexpected events, health and wider economic pressures. There is no single solution for every employee or every organisation. Effective support must therefore be flexible, proportionate and rooted in understanding.
Ultimately, it comes down to fair systems, clear support routes and open conversations. While employers cannot control every external pressure, they can shape how supported people feel when those pressures arise.
To find out more, register here for a free webinar, taking place on 24th March at 12.00pm, hosted by Stacey Lowman, focused on “Managing your Finances in Uncertain Times”.
About the author:
Stacey Lowman is Co-Founder of Money First Aid, delivering practical online courses and financial education sessions across the UK, with currently 120 organisations training employees as Money First Aiders.
A financial wellbeing expert with 18 years’ experience in financial services, Stacey has has worked across global corporates, fintechs and start-ups in the UK, Europe, Asia and Silicon Valley. An accredited financial coach since 2016, she founded her own practice focused on values-led money management, and later co-developed one of the UK’s first digital workplace financial wellbeing experiences. She holds investment qualifications alongside psychotherapy and counselling training.
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