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Following the aftermath of Covid-19 and with the current cost of living crisis, it’s been an undeniably tough time financially for the UK over the past few years. As a result, the clear decline in disposable income has become a source of worry for many households.
Taking a closer look at this, we've researched the UK's most financially resilient towns and cities and those most open to financial advice to find out where is best prepared to weather the current cost of living uncertainty and where could
do with a helping hand through accessible financial guidance. We've then analysed the current financial impact of the cost of living crisis to see how people are being affected, and off the back of our findings, our financial specialist Sarah Pennells has put together a series of tips to help you manage your finances more effectively and where to seek financial advice if needed.
The UK’s most financially resilient towns and cities
The 10 most financially resilient towns and cities 2023.
1 Sutton Coldfield. Financial worry related Google searches per person 0.04. Unemployment rate of 2.1%.
2 East Kilbride. Financial worry related Google searches per person 0.04. Unemployment rate of 3.1%.
3 Solihull. Financial worry related Google searches per person 0.05. Unemployment rate of 4.1%.
4 Poole. Financial worry related Google searches per person 0.05. Unemployment rate of 2.8%.
5 Reading. Financial worry related Google searches per person 0.12. Unemployment rate of 2.6%.
6 Brighton & Hove. Financial worry related Google searches per person 0.09. Unemployment rate of 3.5%.
7 Southhampton. Financial worry related Google searches per person 0.11. Unemployment rate of 3.6%.
8 London. Financial worry related Google searches per person 0.12. Unemployment rate of 4.7%.
9 Weston-Super-Mare. Financial worry related Google searches per person 0.06. Unemployment rate of 2.2%.
10 Oxford. Financial worry related Google searches per person 0.10. Unemployment rate of 3.7%.
Median pay of £656 per week.
According to the data, the 10 towns and cities shown to the left are the ones most financially resilient, as they have smaller financial worry-related Google searches per person, lower unemployment rates and a higher median weekly pay.
The Royal Town of Sutton Coldfield in the West Midlands takes the top spot, and it’s clear to see that the high level of economic activity puts the town in a prime position to weather the cost of living storm. Surprisingly, London places 8th within the top 10 financially resilient towns and cities. However, this isn't to say that support wouldn’t still be welcome. London also has the highest total financial worry-related Google searches per person out of the top 10 - demonstrating the demand for guidance in relation to finance as well.
Home to one of the most prestigious universities in the world, the southern city of Oxford makes the list at number 10. With a median weekly pay of £664.80, it’s again apparent to see why this historic city is in a positive position to cope with the increased cost of living.
However, despite being more financially resilient than the other 111 towns and cities in the list, there will still be areas and individuals open to financial advice and support within each of these top 10 locations. This further highlights the need for readily accessible financial assistance throughout the UK as a whole.
The 10 UK towns and cities most open to financial advice
Our research has demonstrated that the 10 towns and cities to the left are the most open to financial advice and support, as they have the highest amount of financial worry-related Google searches per person and unemployment rates, combined with a lower median weekly pay.
The market town of Walsall, just north-west of Birmingham, appears first with 41,940 financial worry-related Google searches (0.60 per person) and an unemployment rate of 7.5%. In second place is Birkenhead. Found in the metropolitan borough of Wirral, this northern town has one of the smaller populations of 89,678 but one of the highest claimant counts (8%). Coming in at 10th place is Rotherham in South Yorkshire, with a population of 110,782 and a 5.6% claimant count.
The data highlights that these towns and cities may be more open financial advice and guidance than others, to help endure the cost of living crisis.
The 10 most open towns and cities to financial advice 2023.
1 Walsall. Financial worry related Google searches per person 0.60. Unemployment rate of 7.5%.
2 Birkenhead. Financial worry related Google searches per person 0.33. Unemployment rate of 8%.
3 Stockton-on-Tees. Financial worry related Google searches per person 0.36. Unemployment rate of 7.7%.
4 South Shields. Financial worry related Google searches per person 0.32. Unemployment rate of 9.9%.
5 Doncaster. Financial worry related Google searches per person 0.38. Unemployment rate of 5%.
6 Preston. Financial worry related Google searches per person 0.27. Unemployment rate of 8.8%.
7 Blackpool. Financial worry related Google searches per person 0.25. Unemployment rate of 6.7%.
8 Barnsley. Financial worry related Google searches per person 0.31. Unemployment rate of 4.1%.
9 Mansfield. Financial worry related Google searches per person 0.25. Unemployment rate of 3.7%.
10 Rotherham. Financial worry related Google searches per person 0.27. Unemployment rate of 5.6%.
Median pay of £537 per week.
The financial impact of the cost of living crisis
Cost of living crisis statistics 2023.
95% are worried about the anticipated rise in the cost of living.
81% have already made changes to their life to cover an increase in the cost of living.
21% or 1 in 5 have reduced or stopped paying into their savings account to cover the increase in cost of living
24% have approached someone for help with the cost of living.
10% have approached friends and family.
Amid the current crisis, it’s unsurprising that the British public are becoming increasingly worried about their finances. To find out more, Royal London commissioned a cost of living survey of 4,000 UK adults which highlighted that 95% are worried about the anticipated rise in the cost of living.
Unsurprisingly, 1 in 3 people are feeling more anxious than usual as a direct result of the crisis, and 1 in 5 have reduced or stopped paying into their savings accounts altogether. It’s clear that people are already cutting back on any unnecessary expenditures, with 81% having already made changes to their spending habits to adapt to the current financial climate.
5 tips for managing your finances in 2023
To help people that are worried about the cost of living crisis, our consumer finance specialist, Sarah Pennells, has put together some tips on how to manage your finances more effectively in 2023 – as well as how or where to seek financial support if needed.
1. Find out where your money is going
If you find that money is slipping through your fingers, it’s time to turn detective and keep a record of what you spend your money on. A spending diary is a good way of doing this. You simply write down everything you spend and what you spend it on. Do this for at least a month. Use your phone or a notebook – whatever suits you. Monitoring your spending in this way can help you build a picture of exactly where it’s going.
2. Check your statements (all of them!)
Check bank statements and credit card bills (if you have a credit card). For most people, spending varies from month to month, so checking the last three months’ statements will give you a better picture of what you spend. You may find you’re spending money that you can cut back on.
3. Draw up a budget
Drawing up a weekly or monthly budget will help you get your finances under control. A budget is simply a list of money you have coming in and money you spend. There are plenty of budgeting templates online to get you started, like the MoneyHelper budget planner. If you prefer, you can also use budgeting apps to plan what you want to spend and keep track of it.
4. Check if you're entitled to state benefits
Billions of pounds of state benefits go unclaimed each year, and you could be missing out. The national charity Turn2us has a free and confidential benefits calculator on its website which can help you work out which means-tested benefits you’re entitled to. It also has a grant search tool and information on grants you may be able to apply for.
5. Ask for help if you need it
Don’t feel you have to go it alone - there is help available. Contact your energy firm, bank or mortgage lender if you’re worried about your payments. If you are struggling to pay for the essentials, you are using one credit card to pay off another or your debts are causing you worry, then contact a debt advice charity, such as StepChange or National Debtline. Citizens Advice can also help with debt and benefits advice.
The importance of future planning
Our research highlights the importance of financial resilience in the current economic climate and how cities such as Sutton Coldfield are uniquely positioned to withstand economic turbulence. However, it is important for people across the UK to build a strong financial foundation and save for unexpected events, such as job loss or bereavement.
We know that in a time of crisis, future planning can take a back seat, but investing in things such as life insurance can take the pressure off should the unthinkable happen.
Methodology
The Financial Support Index was created by gathering the Google search volumes for 200 financial support and financial worry-related search terms in 121 of the UK’s towns and cities (places with a population of over 75,000). These search terms were then grouped into three categories based on the topic of the search – budgeting, financial support and money struggles – and the total volume of searches for each category was then divided by the population of each town or city to give the amount of search per person. ONS data on the percentage of unemployment claimants and median weekly pay were then also gathered for each town and city.
The total search per person, budgeting search per person, financial support per person, money struggles search per person, claimant count and median weekly pay were then all ranked out of 121. These scores were added together and divided by the total possible amount to give a score out of 100. 100 being the city most in need of financial support, as they have a large amount of financial support searches, a high amount of unemployment claimants and low median weekly wage.
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