Large segment of UK ill-equipped to cope with cost of living rise

Ordinary working families are bearing the burden of the cost-of-living squeeze. New data from Lowell’s Financial Vulnerability Index shows areas with a high proportion of working families have seen a worsening in financial health compared with the UK as a whole in the first half of 2023.

Lowell has identified 133 constituencies which are more financially vulnerable than the UK average. These constituencies are likely to have high numbers of:

• Full-time workers
• Families with children
• Workers in retail
• Workers in manufacturing
• People with no qualifications

Analysis shows areas with high homeownership have also seen limited improvements in financial health, while areas with high levels of social renting are seeing a strong recovery.

Commenting on the data, Lowell’s UK CEO, John Pears, said “What this data shows us is a complex picture of financial health in the UK. Overall it may appear to be one of mild recovery, but within that national picture we need to understand where the pressure is really falling.”

“Government measures, like support on energy bills, have helped to alleviate some of the impact of the cost-of-living increases. But for many ordinary working families, times are still tough. As we soon start to approach the winter months, we need to think about what we can do, at an industry and government level, to provide support to those who need it most.”