New findings from personal finance platform moneyappi have revealed that middle-income earners in Britain are facing the greatest financial pressure, with spiralling expenses and stagnant salaries leaving them without sufficient support.
According to a survey of 2,000 UK adults, 62% of those with annual earnings between £25,000 and £45,000 are struggling to afford everyday necessities. Surprisingly, this rate of financial struggle is higher than that of both lower-income and high-earning groups.
The Misconception of Being Financially Stable
Once considered secure, mid-level earners now find themselves grappling with an increasingly tight squeeze. moneyappi’s research highlights:
-
71% report their income hasn’t kept pace with inflation
-
58% say their housing expenses consume more than half their income
-
43% have relied on credit to pay for essentials such as groceries and energy bills
-
1 in 3 believe they are financially worse off now than during the pandemic’s peak
Though they earn too much to qualify for most forms of government aid, many middle-income households still can’t afford to save or cover unforeseen expenses.
“Middle earners are falling through the cracks of an antiquated system that hasn’t adapted to current systemic issues,” says Ray Law, co-founder of moneyappi. “They earn too much to qualify for help, but not enough to absorb the rising costs of living. That’s putting them under serious financial stress — and employers are beginning to feel the impact too.”
Financial Stress Hits Workplaces
This growing financial pressure is taking a toll on employees’ wellbeing and performance. The report shows:
-
41% of respondents said their work has suffered due to money worries
-
25% have taken sick days linked to stress or anxiety over finances
-
Over a third have looked into changing jobs or reducing their hours to save on commuting and childcare costs
Such disruptions are beginning to affect businesses directly, contributing to lower output and higher staff turnover.
Rising Costs Driving Crisis
Participants pointed to a mix of rising living expenses and post-pandemic financial challenges. From soaring utility bills to costly childcare, the squeeze is becoming unbearable for many who once felt financially secure.
The biggest pressures include:
-
Utility bills: 67% cite energy costs as a major stressor
-
Groceries: 59% say food shopping is becoming unaffordable
-
Childcare: 44% of working parents say it’s not worth the cost
-
Debt: 38% have recently fallen behind on a payment
A Role for Employers to Play
moneyappi is calling on businesses to do more in supporting their staff financially through resources, education, and flexibility.
“Financial stress isn’t just a personal problem; it’s a workplace issue,” added Ray Law. “By supporting the financial wellbeing of middle earners, employers can boost morale, reduce absenteeism, and retain talent.”
