Examining the relationships between psychological distress and financial hardship and uncertainty during the COVID-19 pandemic and the subsequent cost-of-living crisis in the United Kingdom

Abstract

Background: Financial wellbeing is a determinant of mental health but the COVID-19 pandemic and the subsequent cost of living crisis generated by inflation have negatively impacted both aspects. Methods: Data come from Understanding Society. We address long-term (1991-2022) relationships between poor financial wellbeing (PFW), poor financial prospect (PFP) and psychological distress (GHQ-36 >= 9) using a conditional logit model as well as recent trends (2019-2022) using a Latent Growth Modelling (LGM) based on the diagonally weighted least squares (WLSMV) accounting for socio-demographic covariates and measures of deprivation. Multiple imputations were used for non-response. Results: Recent years have seen a surge in GHQ cases and PFP and consistent association between GHQ and PFW (OR=1.31; 95%CI=1.29;1.33) and PFP (OR= 1.13; 95%CI=1.12;1.15) are observed. The association between PFW and GHQ-36 slightly weakened during the pandemic [WLSMV: 0.30 (95%CI= 0.28; 0.33) in 2019; 0.27 (95%CI= 0.25; 0.30) in 2020] but strengthened for PFP [0.22 (95%CI= 0.19; 0.25) in 2019, 0.26 (95%CI= 0.23; 0.29) in 2020]. Those renting and those in the most deprived areas were more likely to report PFW whilst those in the least deprived areas and having a mortgage experiencing greater PFP, both contributing to explain psychological distress. Discussion: Policies implemented during the pandemic might have contributed to partially reduce the association between financial wellbeing and mental health but post-pandemic associations in the context of an early cost of living crisis show an increased risk with those living in the most deprived areas or not owing an accommodation more at risk.