With so many Australians under financial strain, mental ill-health is rife, and psychologists are in high demand. But with heavier workloads, higher costs and fees not rising enough to compensate, there are concerns the workforce may not have adequate support to respond.
Financial stress linked to the cost-of-living crisis is increasing the demand for psychologists. As many Australians battle increased mortgage repayments, rising rents, soaring prices and income pressures, the relationship between money and mind has never been starker.
New research from The Australian National University, which surveyed 4,200 Australians, found that over 30 per cent are finding it “difficult” or “very difficult” to get by on their current income. This is impacting their mental resiliency.
A Beyond Blue survey of more than 5,000 people found that one in three said cost-of-living pressures had negatively impacted their mental health either “quite a bit” or “an extreme amount” over the previous 12 months.
But because not everyone wants to reveal their money woes, many struggle in silence.
Lifeline received more than 26,000 searches for assistance and support through its website in January 2023, its highest on record. In addition, referral searches by helpline counsellors relating specifically to financial issues and homelessness went up 49 per cent between August 2022 and January 2023.
More Australians are also reaching out to psychologists, which means it has never been more important for the profession to understand the relationship between financial and mental health – and look after their own wellbeing at the same time.
Struggling to cope
Among APS member practices, the number of clients seeking help for anxiety and depression related to financial stress has increased by over 50 per cent in the past year, according to APS, with around 20 per cent of all client appointments currently related to the cost-of-living crisis.
CEO of APS Dr Zena Burgess says the link between money worries and mental health is "strong" and can affect the whole family.
"The current cost-of-living pressures are having a negative significant impact on Australians' mental health. Many people are turning to psychologists for the first time, as they are struggling to cope with financial stress. Those already in treatment are spacing their sessions as they cannot afford the recommended frequency to gain maximum benefit.
Research commissioned in 2022 by the Australian Securities and Investment Commission (ASIC) confirmed this, finding that people experiencing financial challenges are at least twice as likely to encounter mental health issues than those who aren’t.
The Money and Mental Health Social Research Report also found young adults, women, First Nations people and small business owners are more likely to experience financial challenges and poor mental health.
The real dangers of financial stress
The most common concerns being discussed with APS psychologists are rising mortgage payments, housing costs, food prices and energy bills, says Dr Burgess.
"These concerns are felt across all income levels, but they are particularly acute for low-income families and those who are already experiencing mental health problems and have less relisence".
As most readers would be aware, financial stress can lead to several physical and psychological problems, including increased heart rate and blood pressure, difficulty sleeping, changes in appetite, headaches, fatigue, irritability, difficulty concentrating, and feeling hopeless or helpless.
When stress is prolonged, it can have a significant impact on someone's physical health, causing chronic pain and impacting their digestive system, heart, sleep, memory and concentration.
"If people are unable to treat their trauma relating to the cost-of-living crisis, they are at risk of developing chronic mental health problems, such as anxiety and depression. They may also be more likely to engage in risky behaviours, such as substance abuse or self-harm," Dr Burgess explains.
The Robodebt Royal Commission exemplifies how financial stress can lead someone to breaking point and leave behind devasted families and loved ones. For months, the commission heard victims share harrowing accounts of the mental harm inflicted upon them unlawfully by the Federal Government.
Many victims came from marginalised communities with pre-existing mental or health issues. In total more than 500,000 innocent welfare recipients were given incorrect or illegal Centrelink income statements or debts. The government also reversed the onus of proof for people wanting to challenge these debts, making the responsibility with victims to prove they didn’t owe the amounts claimed.
Tragically, this program also coincided with over 2,000 welfare recipients dying by suicide. While a direct cause-and-effect link can't be proven or disproven, many families of deceased victims told the commission they believed that Robodebt significantly contributed to their loved ones' passing.
Psychologists are vital, but not always accessible
"Psychologists' services are essential in helping people through the cost-of-living crisis," says Dr Burgess. "They can provide support and guidance to help people manage their stress levels, cope with anxiety and depression, and develop healthy coping mechanisms."
But while the cost-of-living crisis is impacting the mental health of so many, it's also preventing lots of people from getting the help they need. Some may have moved away from their support networks due to housing costs; they may have to travel long distances to see a psychologist; or they may not be able to afford the cost of therapy.
Long wait lists, a lack of available services or stigma associated with mental illness can also prevent people from seeking professional help.
"If people are unable to treat their trauma relating to the cost-of-living crisis, they are at risk of developing chronic mental health problems, such as anxiety and depression." – Dr Zena Burgess
Meanwhile the government's decision in December 2022 to not extend the Medicare-subsidised psychology sessions – despite the housing crisis and ongoing rate rises – has only exacerbated the problem.
"We are witnessing a rise in clients cancelling psychology appointments to save costs," says Dr Burgess. "This is a major concern, as it means that people who need help are not getting it."
Support needed for psychologists too
With demand for psychologists increasing overall, many are under increased pressure when they too may be feeling the pinch.
Dr Burgess believes many psychologists are struggling.
"The cost-of-living crisis is placing psychologists under additional stress. Many are struggling to make ends meet, as their fees are not keeping up with the rising cost of living. This is leading to burnout and job dissatisfaction among psychologists."
The fact that psychologists are battling when they're most needed is a huge concern, she adds.
"If the psychology workforce is not in great shape, it will have a significant impact on its ability to help the public. This is because there will be fewer psychologists available to provide services, and those who are available may be burned out and unable to provide the best care."
Dr Burgess wants to remind psychologists that there is also help and support available for them if they need it, including APS professional development opportunities, PsyCommunity, where they can talk to their peers, and stress management techniques and financial assistance. APS also offers a free course for its members who require support practising self-care.
"We encourage psychologists to take advantage of these supports to help them cope with the stress of the cost-of-living crisis and continue to provide high-quality care to their clients."