The intersecting impacts of mental ill-health and money problems on the financial wellbeing of people from ethnic minority communities
There is strong evidence that financial difficulties and mental health problems are interrelated. However, less is known about how money and mental health can impact on people from minoritised ethnic communities in the UK.
To build an understanding of this, the Money and Pensions Service commissioned the University of Bristol and the University of Southampton to complete 21 semi-structured interviews with a range of organisations who support those from minoritised ethnic communities with financial difficulties and/or mental health problems. These explored the way in which members of certain minoritised ethnic communities may experience financial issues and mental health challenges differently.
- Authors: Jamie Evans, Thomas Richardson, Katie Cross, Sara Davies, Peter Phiri, Nick Maguire and Rachel Jenkins
- Funded by: Money and Pensions Service
- Published by: Money and Pensions Service
- Publication date: January 2023
Key findings
The research highlights a range of financial problems that those from minoritised ethnic groups can face, including:
- living on lower incomes due to difficulties finding good quality employment
- incurring additional costs
- difficulties with the benefits system
- difficulty accessing or using the right financial services products.
The research also found that a ‘vicious cycle’ between money and mental health problems exists regardless of ethnic background. However certain key factors emerged across minoritised ethnic communities:
- Many members of minoritised communities face a ‘double stigma’ where it is particularly difficult to discuss either money or mental wellbeing, so discussing the two together may be especially challenging.
- There is concern about the long-term impacts on children of using them as translators when talking about financial difficulties and/or mental health problems.
- People with limited English language skills may experience additional stress or anxiety about dealing with finances
- Issues such as no recourse to public funds can cause additional challenges for those from minoritised ethnic communities who are experiencing domestic or economic abuse
- A lack of trust in the system can result in fears over being penalised or sanctioned when seeking help for financial matters.