Low financial resilience is a key driver of vulnerability. In May 2022, the FCA reported 12.9 million UK adults as lacking in financial resilience on account of low or erratic wages, little to no savings, or high debt – an increase on the reported 10.7 million in February 2020 that has served to drive the overall proportion of UK adults with characteristics of ‘vulnerability’ up from 24 to 25 million. Of this number, 7.8 million (15%) said they are heavily burdened by their domestic bills and credit commitments.
A further survey conducted between February and June 2022 found that one in four UK adults are in financial difficulty, or would quickly find themselves facing difficulties if exposed to financial shock. Of those surveyed, 4.2 million reported having missed bill or loan payments at least three times in the sixth months prior to the survey. One report revealed just over a quarter of UK adults (27%) to be struggling with regular payments, while 26% say they’ve experienced heightened mental distress as a result of being chased for missed payments. Further to this, research undertaken by the vulnerability registration service tells us a third of UK adults who were already vulnerable are less likely to make financial decisions due to worsening mental health
What’s more, these results don’t differ much by region, with only marginally higher proportions reportedly worse off in the North East and North West compared to the South East and South West. When layered with 2021 census data for England and Wales that shows a 2.2% increase in those aged over 65 plus a 6% increase in household deprivation.
