Mental Health and Financial Crisis: Over Half Struggle Before Payday
New research has revealed a stark connection between mental health challenges and financial vulnerability, with over half of affected individuals regularly running out of money for essentials before their next payday arrives.
Alarming Statistics on Financial Strain
The comprehensive study from Martin Lewis's charity, the Money & Mental Health Policy Institute (MMHPI), published on January 29, 2026, found that 52 per cent of people with mental health problems experience this distressing financial shortfall on a regular basis. This troubling statistic highlights the profound impact that mental health conditions can have on financial stability and day-to-day survival.
Further analysis from the research uncovered that only 35 per cent of this vulnerable group have ever accessed income-maximisation services that could potentially boost their household earnings. This represents a significant gap in support uptake, leaving many without the financial assistance they desperately need.
Millions Could Benefit from Support
The scale of the problem is substantial, with the MMHPI estimating that approximately 3.4 million people across the UK who are dealing with both mental health and debt problems could benefit from income-maximisation support. This represents a considerable portion of the population facing compounded challenges that affect both their wellbeing and economic security.
Nationwide's Innovative Response
In response to this growing crisis, Nationwide Building Society has launched an innovative solution called the 'Better Off' calculator. This tool represents the first benefit calculator to be offered both over the telephone and online, making it accessible to a wider range of people regardless of their digital literacy or internet access.
Developed in partnership with social policy data experts Policy in Practice, this calculator is available to anyone in the UK, not just Nationwide customers. This inclusive approach comes at a critical time when an estimated £24 billion in benefits goes unclaimed each year across the country, representing a massive shortfall in support reaching those who need it most.
Proven Impact and Success Stories
Since its launch in June of the previous year, the 'Better Off' calculator has already demonstrated significant impact. Over 18,000 people have submitted calculations, with more than 11,000 households discovering they could be entitled to an average of £560 extra per month in financial support.
This translates to a potential £75.3 million annually in additional support that could be flowing to households in need, money that could make a substantial difference in people's lives and financial stability.
Calls for Systemic Change
Kathryn Townsend, Head of Customer Vulnerability for Nationwide, emphasised the broader systemic issues at play. "Millions of people across the UK are missing out on vital financial support they are entitled to - simply because the system is too complex to understand and access," she stated.
She continued with a direct appeal: "That's why we're calling on the government to simplify the system, raise public awareness and help challenge the stigma that still prevents too many people from seeking the support they're owed. By removing these barriers, we can ensure that vital financial help reaches every household that needs it and make the safety net work as it was intended."
Real-World Impact and Accessibility Challenges
Debbie Porter, Managing Director at Bakewell-based Destination Digital Marketing, shared a personal story that illustrates both the potential and limitations of such tools. She described helping her mother, a pensioner with no internet access who had been surviving on just £35 a week, to access Pension Credit and Council Tax exemptions.
"Tools like this are great for people who are unaware of what they might be entitled to, but unable to find out what they might be," Porter explained. "As this example shows, as an older person with no internet access, my mum still wouldn't be aware of this tool, so there is still a gap to be plugged in ensuring people who need a service like this can access it."
Her experience highlights the ongoing challenge of reaching the most vulnerable populations, particularly those without digital access or the confidence to navigate complex benefit systems independently.
A Path Forward
The research and subsequent initiatives point to a clear need for both immediate practical solutions and longer-term systemic reforms. While tools like the 'Better Off' calculator provide valuable assistance, experts agree that broader changes to benefit accessibility, reduced stigma around financial help-seeking, and improved public awareness are essential to address this multifaceted crisis.
As Townsend concluded: "We encourage anyone to take a moment to explore what they may be entitled to, so they don't miss out on support that could make a meaningful difference." This message underscores the importance of proactive engagement with available resources while acknowledging the structural barriers that still need to be addressed.
