FEATURE FINANCIAL WELLBEING
Harsh realities Ryan Briggs, founder of FinWELL Training Ltd, tells of the hardships he learned of during a year-long pilot programme that his business ran on various construction sites
Sarah Bolton, Chief Executive Officer of the Lighthouse Construction Industry Charity, which is the FMB’s official charity partner. “Covid made things worse, but even after the pandemic, rising material costs and the cost of living have added further pressure,” Bolton explains. “Over the past 18 months to two years, we’ve seen a steady increase in people seeking financial support. “Last year, the construction industry had one of the highest rates of insolvencies, which sent shockwaves through the sector. Even when the industry is performing well, work remains unpredictable – jobs can be feast or famine. “Many factors affect job security, such as the weather and contract changes,” Bolton adds. “Material price fluctuations can have an impact on wages and contract invoicing, leaving workers vulnerable. “Self-employed workers, in particular, lack salary security. A project might be planned for 18 months but could end after just a few months, leaving them without time to secure their next job.” Managing cash flow Then there is the fundamentally important issue of cash flow that can be affected by unexpected bills and late payments from clients, which Kirtley says can have a “domino effect” on someone’s business, their team members and their suppliers. “In an industry where we already see high rates of mental ill health, including worrying suicide statistics, the added financial pressure can be overwhelming,” Kirtley adds. “The constant worry about money, meeting payroll, and keeping everything afloat is incredibly stressful. “When you add the high-risk nature of the work, it’s easy to see why financial instability contributes so heavily to mental health struggles.” The reality is that one in five self- employed people who access support from Business Debtline come from the construction industry, Brownfield reveals, owing an average of over £37,000 in business debts. “Difficulty in the business can quickly spread to personal finances,” Brownfield explains. “One in every two people we support at Business Debtline has a negative budget, meaning they do not have enough money coming in to cover their essential
money is one thing, but setting aside the right amounts for tax bills is another major challenge. “We also worked with an older construction worker who was planning to retire within five years but had no real strategy. After receiving financial guidance, he discovered he had more retirement savings than he thought, allowing him to create a structured exit plan. Without that intervention, his plan was simply to work indefinitely, which is, unfortunately, a common mindset in the industry.”
“We saw a range of financial struggles. Some workers were unable to afford basic necessities like transport to work or choosing between heating and eating. Others experienced sleepless nights due to financial stress which, in turn, affected their physical health and job performance. “Even those earning decent wages struggled with financial planning. Many didn’t know where to turn for advice on mortgages, investments or pensions. The self- employed and small business owners face additional stress with tax planning; earning
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