Last Updated on: 29th April 2025, 06:39 am
A fresh study by financial platform moneyappi has found that individuals earning a mid-range salary in the UK are currently under the most financial strain, more so than either lower or higher earners. The cost-of-living crisis, stagnant pay, and limited eligibility for state support are pushing millions dangerously close to financial collapse.
Polling 2,000 UK adults, the survey reveals that 62% of those earning between £25,000 and £45,000 a year say they’re struggling to stay afloat when it comes to basic living expenses. This group reported greater hardship than those earning below or above that threshold.
The Hidden Struggles of Being “Comfortable”
Though often perceived as financially “comfortable,” middle earners are increasingly caught in a vice. Key insights from moneyappi’s findings include:
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71% say their wages have failed to keep up with inflation
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58% report rent or mortgage costs consume over half their monthly income
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43% have turned to credit cards or loans to manage essentials such as food, energy, and petrol
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One in three feel worse off today than they did during the pandemic
Despite earning above the cut-off for most government assistance schemes, these households are struggling to save and find themselves excluded from financial 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.”
Impact on Employment
The survey also shows that the financial burden is seeping into the workplace. Among middle earners:
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41% say money worries are hampering their job performance
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25% have taken time off due to financial anxiety or stress
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35% have considered switching jobs or asking for flexible working hours to reduce their outgoings
These challenges are proving costly for businesses, with reduced productivity, growing absenteeism, and increased staff turnover.
What’s Driving the Pressure?
Respondents cited multiple causes for their financial difficulties, ranging from soaring utility bills and childcare costs to mortgage hikes and dwindling disposable income. Many expressed frustration at doing all the right things yet still falling behind financially.
The main contributors include:
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Energy: 67% say rising bills are a major worry
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Food: 59% struggle to afford their weekly shop
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Childcare: 44% of middle-income parents say the cost outweighs the benefit of working
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Debt: 38% have missed or postponed a repayment in the last half year
moneyappi’s Call to Employers
moneyappi is urging employers to take proactive steps by improving financial wellbeing tools, enhancing communication, and offering more flexible 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.”
