Staff worrying about festive debt to cost UK firms £1.6bn
THE festive financial hangover of Britons could cost businesses £1.6billion in lost productivity as stressed-out workers worry about increasing debts, a report revealed.
Many employees will feel the strain until at least March, as they attempt to pay down credit cards and overdrafts.
Stress about the extra borrowing will damage the wellbeing of staff, leading to days off and poor performance, says the Centre For Economic Business Research.
Four million days off are taken every year due to financial concerns.
And those who worry at work admit that it can cost them two hours of output a day.
Britons fret more about money while at work than other key issues, such as family problems and health matters, the research found.
More than half – 57 per cent – of workers come under extra financial pressure during the Christmas period. Concerns about spending start in the autumn for 39 per cent and a quarter admit they will continue to feel a burden on their finances until spring.
Britain continues to lag behind other major economies when it comes to productivity.
In 2016, workers in the UK were 16.3 per cent less productive, on average, than their counterparts in the other G7 nations.
And in only two quarters since the 2008 financial crisis has productivity in Britain beaten the 0.5 per cent average growth rate achieved before 2007/08.
Falling productivity levels have major implications for balancing the UK’s books.
Debt charity Christians Against Poverty agreed with the report.
A spokesman said: “It’s no surprise to us that people will feel less productive if they are living with debt.
“They will be losing sleep, not eating properly and constantly puzzling over what they can do to help their financial situation.
“Our experience shows that stresses about money can affect every part of someone’s life – from their relationships to their mental health.
“The best thing to do, if that’s you, is avoid further credit and seek help from one of the free debt counselling agencies.”
Kate Smith of Aegon, which commissioned the new study, said: “It comes as no surprise that every family wants a great Christmas.
“This increases the financial strain in November and December. But it’s staggering to see that many workers will continue to feel the increased burden on their purse strings well into the new year.
“Financial concerns result in days being taken off and money worries consuming hours at work every week. All of this is set to worsen Britain’s productivity problem.
“Businesses should be prepared to support employees with their financial wellbeing.
“This is particularly important at the start of the new year.
“We need a sustained focus on short and longterm financial wellbeing in shops, offices and factory floors across the country.”