A new report reveals that a third (32%) of households in Scotland have no savings, a higher proportion than the rest of the UK, where the figure stands at 23%. This gap is widening, with Scotland seeing an increase in households without savings, up from 29% in 2023, while the rest of the UK saw a decrease.
The analysis by the University of Bristol and the Financial Fairness Tracker, which monitors the financial well-being of around 6,000 UK households, highlights growing financial struggles in Scotland. The survey also found that 14% of Scottish households are “very worried” about their financial situation over the next year, and 20% struggle to cover basic expenses like food.
Financial stress is taking a toll on Scots’ health, with 36% feeling they have no control over their finances and a significant portion reporting poor sleep or worsening mental health due to financial concerns.
Despite these challenges, financial confidence in Scotland has improved since 2022, with the percentage of people lacking confidence in their finances dropping from 39% to 20%.
Experts emphasize the need for better financial security, with Mubin Haq, CEO of abrdn Financial Fairness Trust, noting that without savings, everyday problems like a broken fridge can lead to debt.
Professor Sharon Collard from the University of Bristol stresses the link between financial struggles and poor health, urging governments to address both issues together to foster long-term growth.
