Households left with an average of £196 at end of each month

Latest figures from Hargreaves Lansdown has found that households have an average of £196 left at the end of the month.

The data showed that among those households on the lowest fifth of incomes, this falls to £3, and for the second lowest it’s £34.

Younger people have less left at the end of the month. In households headed by someone aged 20-24, the average leftover is £20, and among those headed by someone aged 25-29, it’s £88. Renting households have an average of £62 left at the end of the month, and single people have £42.

Among those in poor health, the average leftover is only £21, and for those with high anxiety are left with £39.

The local areas with the lowest levels of cash at the end of the month are Hull City at £65, Glasgow City at £69, Blaenau Gwent at £78, Dundee City at £80 and West Dunbartonshire at £85.

Sarah Coles, Head of Personal Finance at Hargreaves Lansdown, said “If you’re regularly holding your breath for payday, you’re not alone. While wages have been rising ahead of prices for many, it’s far from the case for everyone. If your pay rise has struggled to keep pace with runaway rents, mortgage rate rises or higher bills, your finances will be creeping closer and closer to the edge. The lowest earners in the UK are left with just £3 at the end of the month – dangerously close to the abyss.

“We know from the Barometer how important it is to have wiggle room in your finances. People who always run out of money by the end of the month fare worse for financial resilience across the board. Only around a quarter have enough emergency savings (27%) and just a fifth are on track with their pension or SIPP(20%).

“Unsurprisingly, those on lower incomes are more likely to get to the end of the month with little or nothing left over. The lowest-earning households have £3 between them once the basics are covered.

“Younger people tend to be on lower incomes near the start of their career, so also have far less cash left at the end of the month. This is even more likely to be the case while they’re renting. The runaway cost of rent over the past couple of years has stretched their incomes particularly thin, so renting households have an average of £62 left at the end of the month. Those who are single are also likely to be shorter of cash, and they have just £42 left.

“There are also significant challenges for those who are in poor health, particularly where it means they cannot work full time. Where their health conditions require additional support and expense this can make it even harder. So, it’s no surprise that among those in poor health the average left over at the end of the month is just £21.”

Areas with the lowest levels of cash left at the end of the month

Kingston Upon Hull	Yorkshire and The Humber	£65
Glasgow City	Scotland	£70
Blaenau Gwent	Wales	£78
Dundee City	Scotland	£80
West Dunbartonshire	Scotland	£85
Merthyr Tydfil	Wales	£86
Knowsley	North West	£86
Liverpool	North West	£87
Blackpool	North West	£87
Middlesbrough	North East	£92
Stoke-On-Trent	West Midlands	£103
Nottingham	East Midlands	£104
Hartlepool	North East	£105
Burnley	North West	£107
Manchester	North West	£107
Rochdale	North West	£108
Sandwell	West Midlands	£108
Neath Port Talbot	Wales	£110
Hyndburn	North West	£110
South Tyneside	North East	£110