Here’s how many Brits can pay for a £1,000 emergency

Millions of people across the UK are teetering on a financial knife-edge and have no or very few savings accessible. This is according to the Financial Conduct Authority (FCA) which has published its latest Financial Lives survey.

The survey, which included responses from nearly 18,000 people from around the country, found that 10% of respondents have no savings at all. A further 21% of respondents had less than £1,000 saved. Other key data points from the report include:

Based on this data, the regulator estimates that around 13 million adults across the country have ‘low financial resilience’. This means that they have low levels of savings which could get them through a financial emergency, are heavily burdened by existing bills and/or credit commitments, or are in financial difficulty and have missed paying bills in at least three of the past six months.

Other key data points from the report include:

• 2.8 million people have long-term credit card debt

• 3.8 million retirees are worried they don’t have enough money to last their retirement

• 35% of respondents have money in investments

• 900,000 people are ‘unbanked’ – meaning they have no bank account at all.

“Our data shows that finances are stretched for many – with some unable to save for a rainy day. And we know that some do not have the confidence to invest,” said Sarah Pritchard, Executive Director of Consumers and Competition at the FCA.

“But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives,” she said.

The fact that so many people across the UK are in such a financially precarious position should be a real cause of concern for banks, government and regulator, said Helen Undy, Chief Executive of the Money and Mental Health Policy Institute.

“Our own research shows that people with mental health problems would be twice as likely to struggle to make ends meet if they lost their main source of income. And while it’s encouraging to see that more people are accessing bank accounts, many people with mental health problems still face an uphill battle when using these services, struggling to speak to specialist teams, understand terms and conditions or resist offers of new credit.”

“Banks need to make their services accessible and to offer people more tools and support to stay in control of their finances and savings, from spending controls to carers’ cards. We also want the FCA to go further in making sure firms act on their obligations under the Consumer Duty to deliver better outcomes for customers,” she said.

“These issues should also be a top priority in the government’s upcoming financial inclusion strategy. Any efforts to tackle financial exclusion that don’t consider the needs of people with mental health problems won’t succeed.”