Financial stress is creating a growing drag on the UK economy, with 2.05 million workers having missed work in the past year due to money-related pressures, according to new findings from Pepper Money’s Specialist Lending Study 2025/26.
The lender said this amounts to 8.4 million lost working days at an estimated annual cost of £860m in lost output.
Based on a survey of 4,000 UK adults, the report highlights increasing levels of financial strain and its impact on mental health, workplace absence and wider concerns about economic prospects.
Pepper Money found that 37% of UK adults have experienced significant financial stress in the past three years and a third say their financial position is affecting their mental health.
The highest levels were reported in London at 38%, followed by the North East at 36%, and the North West and Midlands at 35%.
The lender said wider economic uncertainty is intensifying these pressures, with 56% of UK adults worried about their financial position as a direct result of the current economic climate.
The findings were published shortly after the Government’s National Financial Inclusion Strategy, which recognises the link between mental health and financial resilience and aims to ensure services and support are accessible to those facing economic or mental health challenges.
Regional disparities were also highlighted in the study. Londoners reported the highest financial anxiety of any region, with 61% worried about their financial position compared with the UK average of 56%.
They were also almost twice as likely to miss work due to money-related pressures, at 11% compared with 6% nationally.
Paul Adams, sales director at Pepper Money, said: “Financial stress is now having a measurable impact on the UK economy.
“With more than 2 million people missing work due to money pressures, the scale of lost productivity is a cause for concern.
“The human impact behind these numbers is just as stark. A fifth of UK adults are now reporting significant financial stress, and many are struggling with the mental and emotional toll this creates.
“As households face increasing complexity in their financial lives and a difficult cost of living landscape, independent advice has never been more vital.
“People need clear guidance, empathetic support and more inclusive lending options to help regain control and maintain stability.”
