Nearly one in four would struggle to cover an unexpected £300 bill

Nearly one in four (39%) of adults (27.2 million, as of March 2026) would struggle to cover an unexpected £300 bill, new research from Chetwood Bank has revealed.

The research found that financial resilience remains under pressure, with more than half (55%) of UK adults saying they have changed their savings or financial plans in response to rising living costs or inflation, according to research commissioned by the UK digital challenger bank. That figure was highest among respondents from Wales (71%) and London (64%).

The research also highlights the difficulty many households face with financial planning and establishing good savings habits. For instance, 56% of respondents below retirement age stated that they intend to add money to their savings, but often do not follow through. Among that same age group, 57% stated that they add money to their savings but frequently need to withdraw it for everyday living costs.

This suggests that for many households, savings are functioning less as a long-term financial buffer and more as a short-term tool to manage everyday costs and unexpected expenses.

Significant concerns about inflation also remain, Chetwood Bank’s study found. Two-thirds (67%) of UK adults are worried about its impact on the value of their savings. More than half (53%) say financial decisions feel more complicated today than they did ten years ago.

Ben Mitchell, Director of Savings at Chetwood Bank, said, “For many households, money is set aside in their savings but frequently comes back out again to manage everyday costs. With global economic factors continuing to shift, from energy prices to wider geopolitical pressures, the cost of living remains uncertain and financial resilience is still under strain. It’s been proven that having a buffer of £1,000 in savings is linked to better sleep and reduced stress, so building a meaningful savings pot should be a priority for households everywhere.

“Our research shows savers today are finding financial decisions more complicated than ever, which underlines the importance of a no nonsense approach to savings, with straightforward products and clear information that help people feel confident in their choices. Starting small and building that habit over time is often the most effective way to take control of your financial position, and the best time to start is today.”