Manchester, UK. April 28th 2025 – A new survey by moneyappi has revealed that middle-income earners in the UK are under more financial pressure than any other demographic, with rising living costs, stagnant wages, and limited access to support pushing millions to the brink.
The poll of 2,000 UK adults shows that 62% of people earning between £25,000 and £45,000 a year say they are struggling to keep up with essential costs. This is a higher percentage than both lower and higher earners.
The cost of being ‘comfortable’
Often considered financially “comfortable,” middle-income households are increasingly finding themselves squeezed from both sides. According to moneyappi’s research:
- 71% say their wages haven’t kept pace with inflation
- 58% report that housing costs (rent or mortgage) now take up more than half their monthly income
- 43% have used credit to cover everyday costs like food, fuel, and energy
- 1 in 3 say they feel worse off now than they did during the height of the pandemic
Despite earning above the threshold for most government benefits and cost-of-living payments, many are unable to build savings or access support.
“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.”
Employers feel the strain
The financial pressure is now creeping into the workplace. Of those surveyed:
- 41% of middle earners said money worries have affected their performance at work
- 1 in 4 admitted taking time off due to stress or anxiety linked to their finances
- 35% said they’ve considered changing jobs or asking for more flexible hours to help reduce costs
This rise in financial stress is costing businesses through increased absenteeism, reduced productivity, and higher turnover.
The root of the pressure
Respondents blamed a mix of rising household bills, childcare costs, and increased mortgage repayments following interest rate hikes post-pandemic. Many also pointed to shrinking disposable income and a sense that they’re “doing everything right, but still falling behind.”
Key pressures include:
- Energy bills: 67% say rising utility costs are a major source of stress
- Food prices: 59% say their weekly food shop has become unaffordable
- Childcare: 44% of parents earning in the middle-income bracket say childcare costs now outweigh the benefits of working
- Debt: 38% have missed or delayed a debt repayment in the last six months
Call for action
moneyappi is calling on employers to play a bigger role in supporting financially stressed workers through better communication, improved access to financial wellbeing tools, and more flexible working arrangements.
“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.”
ENDS