Report from St James's Place details growing wealth gap between Yorkshire and South of England

The research, conducted by St. James’s Place in conjunction with the Centre for Economics and Business Research, also shows that 40 per cent of people in the region do not feel financially resilient, up from 34 per cent last year.

Alexandra Loydon, director of partner engagement and consultancy at St. James’s Place, said: “This year’s Financial Health Index shows that people’s wealth and financial wellbeing has deteriorated in certain regions, but not in others, underlining the scale of efforts needed for levelling up across the country.

“Clearly the financial environment in the last year or so has impacted some more than others, and it’s likely that this will only be exacerbated in the near future, as the effects of double-digit inflation, high interest rates and turbulent markets continue to bite over the next few months.”

The research also shows that 87 per cent of people in Yorkshire and the Humber do not feel wealthy, the second highest score among regions behind the North East. This rose from 78 per cent last year.

Some 31 per cent of people in the region have a financial plan, down from 37 per cent last year.

Despite these issues, the research also notes that 64 per cent of people in Yorkshire and the Humber said they have been able to cope with the rising cost of living and expect to cope over the winter.

The report calculates a total financial health index score for each region of the UK, based on wealth, drivers of wealth and perceived financial wellbeing.

In England, only Yorkshire and the Humber, the North West and the North East saw a drop in their financial health index score, while all other regions saw a year on year improvement.

The South East has the highest level of financial health in the UK, scoring 77.2 on the scale, while the North East is the worst performing region, with a score of just 11.4, falling from 19.1 last year.

Ms Loydon added: “Financial health assesses our overall financial wellbeing, including how comfortable and resilient we are to pressures on our finances, and it’s concerning that an increasing number of people feel financially vulnerable thisyear.”

In the UK more widely, more than a third of people do not feel financially resilient. Two thirds of people said they do not feel financially comfortable, while only 34 per cent have a financial plan.

Almost half (47 per cent) of the public noted that the cost of living is their main barrier to wealth growth, rising to 55 per cent among those with household income below £10,000. This compared with 36 per cent of those with income above £80,000.

Inflation was the next most frequently cited barrier to wealth growth, with 24 per cent of people noting it as an issue. This was followed by the impact of low interest rates, which were cited by 21 per cent of people.

A spokesperson from the Department for Levelling Up, Housing and Communities said: “Levelling up is a long-term programme of reform and our focus is on those communities who have been overlooked for far too long. Whether it is record investment in town centres and high streets, devolving more money and power to the regions or moving 22,000 Civil Service roles out of London by 2030, we have a strong record of delivering on our commitment to spread opportunity right across the country.“We recognise the pressures of the rising cost of living which is why we have delivered £1,200 of direct help to those most in need this financial year, including £400 towards energy costs. The most vulnerable households will also receive up to £1,350 in additional direct support in 2023/24 and benefits will be increased in-line with inflation at 10.1%, while our Household Support Fund is helping people with essential costs.”Looking at key reasons behind wealth growth, just under a third reported rising house prices as the most prominent driver, followed by 27 per cent who said pay rises.

​

​