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Loneliness Costs U.K. Employers £2.5 Billion A Year — Can Flexible Workspaces Help?

25% of U.K. adults feel lonely, and it’s costing businesses billions. Flexible workspaces could be the overlooked solution to boosting wellbeing, reducing turnover, and creating teams that actually feel connected.

Jane SartinbyJane Sartin
October 2, 2025
in Coworking
Reading Time: 3 mins read
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Loneliness Costs U.K. Employers £2.5 Billion A Year — Can Flexible Workspaces Help

Remote and hybrid models have brought greater flexibility, but they’ve also reduced the everyday interactions many of us once took for granted.

Loneliness is becoming increasingly common, with 25% of U.K. adults saying they feel lonely “often, always, or some of the time,” according to the Office for National Statistics. 

And this isn’t just a personal issue impacting the individual. It has a ripple effect on wellbeing, productivity and how people present themselves at work. When a team member feels disconnected, it can impact how they interact with colleagues, collaboration, and overall satisfaction and morale.  

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According to a study by the New Economics Foundation, loneliness costs U.K. employers £2.5 billion annually, driven by: 

  • Staff turnover (£1.62 billion) 
  • Reduced productivity (£665 million) 
  • Sickness absence (£20 million)  

So, could flexible workspaces offer a practical way to help people reconnect and reduce social isolation? 

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Understanding loneliness in the workplace 

The way we work has changed dramatically. Remote and hybrid models have brought greater flexibility, but they’ve also reduced the everyday interactions many of us once took for granted. 

For freelancers, sole traders and small teams, working from home can mean long stretches without meaningful social contact. A recent study by the Campaign to End Loneliness and the British Red Cross found that more than one in ten U.K. workers often or always feel lonely at work, and nearly half feel lonely some of the time. 

Feeling part of something bigger matters and when that’s missing from our lives, it shows.  

What flexible workspace can offer 

Flexible workspaces are designed to be more than just a desk and Wi-Fi. They’re places where people can meet, share ideas and build a sense of community.  Even if it’s just exchanging a few words while making a cup of coffee in the shared kitchen, that moment of connection can make a difference to someone’s day. 

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Many flexible workspaces host regular events, whether it’s breakfast meetups, yoga sessions or quizzes, offering opportunities to build a “work family,” even with people who aren’t employed by the same business.  

Why this matters for business 

Connected teams tend to be more engaged, more productive, and more resilient. 

The Instant Group has reported a growing demand for flexible workspace, driven by a desire to support wellbeing and foster collaboration. For businesses, this isn’t just about buildings or desks – it’s about creating environments where people can connect and inspire each other.  

In a competitive talent market, offering flexible workspace options can also be a strong differentiator. It shows a commitment to employee wellbeing and can help attract and retain the best talent, no matter what their personal circumstances.   

Looking ahead 

Of course, a flexible workspace won’t solve loneliness on its own, but it can play a meaningful role. 

As organizations rethink their workspace strategies, there’s an opportunity to look beyond cost and efficiency. The spaces we work in shape how we feel, how we connect, and how we perform. 

Rethinking where and how we work could be a small but significant step towards tackling the much wider issue of loneliness.  

Offering access to flexible workspace can give people the choice to work in ways that support both their productivity and their wellbeing. And for many of us, simply having the option to work alongside others, even occasionally, can make a real difference. 

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Jane Sartin

Jane Sartin

Jane Sartin is the executive director of the Flexible Space Association (FlexSA), formerly known as the BCA. The Flexible Space Association supports, promotes and represents the flexible workspace industry across the U.K.

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