Workers earning up to £40k save just 1% – despite surge in spare cash
Estimated read time: 5 mins
- Despite a fourfold rise in spare cash, low earners are saving just 1% of their income – exposing a crisis of confidence and missed opportunities to build long-term financial security.
- If consistently saved, today’s spare cash levels could deliver over £47,000 in savings within a decade.
June 2025: Despite a sharp rise in monthly disposable income, UK workers earning up to £40,000 are still saving just 1% of what they earn – revealing a worrying mismatch between growing financial opportunity and saving behaviour, according to the latest Vanquis Financial Wellbeing Index (VFWI).
The latest edition of the report, which explores the financial realities of UK workers earning up to £40,000, found that the amount of money left over each month rose significantly quarter-on-quarter, from 3% in Q4 2024 to 12% in Q1 2025. This was largely driven by steady income growth (+2%) and a 5% reduction in expenses.
However, this increase in spare cash is not translating into higher savings. On average, workers saved just 1.33% of their income in Q1 2025, only a marginal rise from 1.16% the previous quarter. Persistent financial stress appears to be a key factor: 40% report money worries are negatively affecting their wellbeing. In response, 35% have taken second jobs, and 42% are working more hours to boost earnings.
Numeracy confidence
Numeracy confidence plays a powerful role in unlocking financial resilience. Yet among workers earning up to £40,000, one in four (24%) feel anxious using maths; nearly a third (28%) avoid jobs involving numbers; and 33% say they aren’t “a numbers person.” This suggests that boosting number confidence could be key to turning today’s spare cash into lasting savings.
Missed opportunity
If a worker earning £40,000 saved just 5% of their income each month, they could build nearly £20,000 in savings over 10 years at current interest rates. Saving the full 12% that the average worker has left over each month could yield more than £47,000 over the same period. 1
1 Calculations based on workers setting aside equivalent amount of earnings, after expected tax, on a monthly basis over a ten-year period with no withdrawals. Based on a compound interest rate of 4%.
Ian McLaughlin, CEO of Vanquis Banking Group, commented: “Improving numeracy confidence is a powerful tool in boosting financial wellbeing. People who feel confident with numbers are consistently better at budgeting, building savings, and avoiding problem debt – key behaviours that build resilience. Our latest Financial Wellbeing Index shows that more UK workers are ending the month with spare cash, an encouraging sign. But persistent vulnerabilities remain, such as low savings rates and financial stress. If we want people to move from just surviving to truly thriving, building confidence with everyday numbers must be part of the solution.”
Sam Sims, CEO of National Numeracy added: “The Vanquis Financial Wellbeing Index shows just how powerful number confidence can be in shaping our financial lives. While many are motivated to improve their numeracy for personal growth or better money management, too many still feel anxious or unsure of its value. Bridging that confidence gap isn’t just about maths – it’s about giving people the tools to move from just getting by to building real financial security.”
Vanquis will continue to track the financial resilience of workers earning up to £40,000, with the next Financial Wellbeing Index set for release in September 2025.
The report is based on actual transactional data from over 2,500 consumers, offering a comprehensive and accurate view of their real-world financial behaviour across essential and discretionary spending categories. This is supported by a nationally representative survey of over 1,000 workers, assessing their attitudes towards their personal finances.
This edition was published in partnership with National Numeracy, the UK’s only charity dedicated to everyday maths. It therefore also explores the oft-overlooked importance of numeracy confidence on people’s financial wellbeing by hindering financial capability, job prospects, and long-term planning.
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Note to Editors:
About Vanquis
- Vanquis is the UK’s largest specialist finance provider for financially underserved customers and one of the biggest financial services businesses outside the Southeast.
- Headquartered in Bradford and listed on the London Stock Exchange, Vanquis serves 1.69 million customers through core banking services and Snoop, a platform that helps individuals save up to £1,500 annually on spending and household bills.
- Committed to financial inclusion and social mobility, Vanquis provides tailored products and services that empower customers to take control of their financial futures. This aligns with our mission: to deliver caring banking so our customers can make the most of life’s opportunities.
About National Numeracy
- National Numeracy is a charity dedicated to helping people feel confident with numbers and using everyday maths. We empower people to thrive by using numeracy to open up opportunities and access brighter futures, targeting communities where the need is greatest.
- National Numeracy is a registered company (company no: 7886294) and charity (charity no: 1145669).
- Visit: nationalnumeracy.org.uk
About the Data
- Data Source: Snoop / SpendMapper
- Data: The analysis is based on anonymised transactional data from a stable cohort of 2,508 people, covering a two-year period from Q1 2023 to Q1 2025. The data reflects consistent transaction and income history over this time frame. Within this broader cohort, a focused subset of 1,263 participants earning up to £40,000 annually provides targeted insights into the financial behaviours and pressures faced by lower- to moderate-income earners.
- Mintel: Consumer Financial Wellbeing Survey on behalf of Vanquis – 2025
- Fieldwork dates: 26 April – 6 May 2025
- Source: Kantar Profiles/Mintel
- Market: Great Britain
- Base: 1000 internet users aged 16+
- 583 earning less than £40k pa
- 369 earning more than £40k pa
- 48 preferred not to disclose earnings
- Earning over/under £40,000. Higher/lower earners refers to household income when referring to the Mintel data.