Wales tops UK for poor worker mental health and money stress 2026

Key Points

• According to research conducted by The Mental Health Foundation in September 2026, workers in Wales have the worst mental health, occupational well-being, earnings satisfaction, and in-work financial difficulties compared to other nations in the UK.
• In 2024, 26% (approximately 372,000) of workers in Wales reported poor mental health, which is above the national average of 22%.
• Over 15 years, the number of workers in Wales with poor mental health increased by 183,000 and has doubled since 2009/10.
• One out of every five workers in Wales (19%, approximately 273,000) feels stressed or unhappy with their work most or all the time.
• The mental health inequality gap between Wales and the rest of the UK increased from 0.1 percentage points in 2020/21 to 4.6 points in 2023/24.
• In-work financial difficulties in Wales almost doubled from 6% in 2020/21 to 11% in 2023/24, and 49% of workers in Wales are dissatisfied with their earnings.

Wales (Wales Times) September 13, 2026 – Workers in Wales are experiencing the worst mental health and financial wellbeing outcomes of any nation in the UK, according to a new analysis published by the Mental Health Foundation. The findings, set out in The Foundation Reports: Employment and mental health inequality, show that more than a quarter of Welsh workers were in poor mental health in 2024, with job-related stress, income dissatisfaction and in-work financial hardship all higher than UK averages.

What does the Mental Health Foundation study reveal about Welsh workers’ mental health?

As reported by Business News Wales, the Mental Health Foundation’s analysis of the Understanding Society longitudinal dataset, which tracks around 40,000 individuals across the UK, found that 26% of Welsh workers – approximately 372,000 people – were experiencing poor mental health in 2024, significantly above the 22% UK average. Over the past 15 years, the number of workers in Wales with poor mental health has increased by 183,000, doubling the level recorded in 2009/10 and marking the steepest deterioration in workforce mental health observed anywhere in the UK.

The report also highlights that 19% of Welsh workers, equivalent to 273,000 people, say their job is harming their mental health, with respondents reporting feeling stressed or unhappy due to work most or all of the time. The mental health gap between Wales and the rest of the UK has widened markedly, moving from 0.1 percentage points in 2020/21 to 4.6 percentage points in 2023/24, indicating that Wales is diverging from broader UK trends.

How severe are financial pressures on Welsh workers?

The study links worsening mental health to growing financial strain. During the cost-of-living crisis, the proportion of Welsh workers experiencing financial hardship nearly doubled from 6% in 2020/21 to 11% in 2023/24, meaning one in nine workers now report hardship. Almost half of Welsh workers (49%) say they are dissatisfied with their income, up from 36% three years earlier and above the UK average of 43%.

The Foundation Reports note that financial hardship is the strongest driver of mental health inequalities across the UK, with people who are financially struggling at very high risk of poor mental health. In Wales, these pressures are compounded by lower wages, slower wage growth and worsening housing affordability, which have intensified during the cost-of-living crisis.

Which groups are most affected by poor workplace mental health in Wales?

The report states that the 15-year decline in workforce mental health has been worst for groups already at higher risk of poor mental health. Disabled people, those with long-term conditions and young people are experiencing higher levels of poor workplace wellbeing outcomes, while lone parents face particularly intense financial hardship.

These patterns echo wider UK findings that younger workers and those with pre-existing vulnerabilities are disproportionately affected by stress, burnout and financial anxiety.

What do experts and officials say about the findings?

Catherine Razzell, Policy and Public Affairs Manager for Wales at the Mental Health Foundation, said: “Work can and should support good mental health. At its best, it gives us purpose, social connection, financial security and a sense of control over our lives. That’s why it’s deeply concerning to see so many more Welsh workers struggling with their mental health than just 15 years ago and the Welsh workforce, at large, facing these deeply embedded challenges.”

Razzell added: “But this isn’t inevitable. We know what helps: secure jobs, fair pay, engaged managers, actions to prevent absence and support recovery and workplaces where people feel valued and able to speak openly about their mental health.” She noted that while there is political will to improve fair work and workplace wellbeing through Welsh Government initiatives, “the reality from the data available is falling short in terms of job quality, income security and workforce wellbeing”.

“Imminent action is required by Welsh Government and employers to pull the Welsh workforce out of these depths; prevent mental health problems at work, and create healthier workplaces that support people to thrive, benefitting people, businesses and the wider economy,” Razzell said. She warned that “without action that tackles the root causes of poor mental health, including financial insecurity and adverse working conditions, the wellbeing of the Welsh working population is likely to deteriorate further”.

What recommendations does the report make for government and employers?

The Foundation Reports set out a series of recommendations for the Welsh Government, the UK Government and employers to better support employee mental health and reduce workforce exclusion. Key proposals include strengthening support for people to stay in and return to work, while tackling workplace and financial pressures that can damage mental health or push people out of employment.

For the Welsh Government, the Mental Health Foundation calls for childcare to be treated as labour market infrastructure, recognising its importance in supporting parents, particularly women, to enter, remain and progress in work. The report also urges more integrated employability and wellbeing support, alongside solutions to practical barriers such as transport and caring responsibilities.

On employer action, the charity recommends strengthening employer-facing support on workplace health and healthy work design, including expanding initiatives such as Healthy Working Wales that promote shared learning on good practice in workplace mental health.

Background to the development

The Foundation Reports draw on 15 years of data from the Understanding Society study, which follows around 40,000 individuals across the UK to track changes in health, employment and living conditions over time. Previous editions of the reports have shown that Wales has consistently recorded higher levels of poor mental health than the UK average, with 13 out of the last 15 years above the national mean. Post-pandemic, while UK averages fell back towards pre-pandemic levels, Wales’ rates continued to climb, peaking at 28% in 2022/23 before easing slightly but remaining 2.7 percentage points above the UK average.

Parallel research by bodies such as CIPD and Mental Health UK has highlighted high stress, burnout and work-related sick leave across the UK, with particular concerns for younger workers and those in financially precarious situations. The latest Foundation Reports place these trends in a longer-term context, showing how structural factors such as low wage growth, housing costs and service pressures have interacted with the cost-of-living crisis to worsen mental health inequalities in Wales.

Prediction: how could this affect Welsh workers and employers?

If the trajectory identified in the report continues, Welsh workers are likely to face higher rates of stress-related absence, reduced productivity and greater difficulty retaining staff, particularly in sectors with lower pay and higher job insecurity. For employers, this could mean increased recruitment and training costs, more frequent disruption from sickness absence and greater pressure on line managers to support staff with complex mental health and financial needs.

For workers, especially younger employees, disabled people and lone parents, the combination of poor mental health and financial hardship may limit career progression, increase reliance on sick leave and reduce long-term earnings potential. Without targeted interventions on job quality, income security and access to affordable childcare and transport, the report suggests the gap between Wales and the rest of the UK could widen further, entrenching disadvantage for parts of the Welsh workforce.