North West falls further behind UK as financial vulnerability worsens

THE North West of England is the second most vulnerable Region in the UK after the North East, according to Lowell's latest Financial Vulnerability Index. The gap between the financial health of the Region and that of the UK has increased by almost 50% since 2017, despite a relative improvement in the 1st half of 2023 which was driven by a fall in consumer borrowing and loan default.

Benefits claims increased by 0.3% in the North West. This, alongside the widening gap between the financial health of the Region and of the UK, signals that despite Government support, households in the North West of England still struggle with the cost of living.

Merseyside, particularly Liverpool and Birkenhead, and most of Greater Manchester continued to suffer from financial ill health relative to the rest of the UK.

Commenting on the data, Lowell's UK CEO, John Pears, said:- "The picture of the North West is a rather complex one. There are clear signs that households are still struggling with their finances. Families are borrowing less, but more people are claiming social benefits. The Region has also struggled to recover from the pandemic at the same rate as the rest of the country. It's so important that the Government and people in and around the credit industry take the time to understand the underlying, long term structural factors that are holding the Region back so that we can reverse this trend."

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 1st 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 home ownership have also seen limited improvements in financial health, while areas with high levels of social renting are seeing a strong recovery.

The Financial Vulnerability Index is an innovative tool to measure and track financial resilience, nationally and locally, across the UK. Created by Lowell and the Urban Institute, and provided by Opinium, the index brings together publicly available measures and Lowell's proprietary data to give a clear picture of financial vulnerability in the UK.

The full tool can be accessed here. The data can be downloaded for free here and a summary of the key findings are available here.

THE latest analysis by finance experts, RIFT, has revealed which jobs are due for a pay rise in 2023 having seen the largest salary reductions year on year, as well as the job roles you might want to consider having seen the largest pay rises. RIFT analysed data from the Office for National Statistics looking at current earnings by occupation across the UK and how these earnings have changed on an annual basis. The results show that the nation's highest earners in 2022, were predictably Chief Rxecutives and senior officials with an average salary of:- £109,937. Marketing, finance and information technology directors also ranked high, as did medical practitioners, pilots and headteachers. At the 0er end of the table, Cleaners took home the lowest salary at:- £11,628, with kitchen assistants, retail cashiers, waiters and waitresses, bar staff, playworkers and lollipop men and women also making the list of worst paid occupations. However, it's writers who may want to consider a career change. The analysis by RIFT shows that over 60 occupations have seen their income reduce on an annual basis. Authors, Writers and Translators saw the largest salary reduction of all professions, falling by -17.6% when compared to the previous year: a cut of over:- £6,000. Those managing within the creative industries also saw a substantial reduction of -17.1%, equating to almost:- £8,300 less, while statisticians took a pay cut of -15.2% or:- £8,670.

So which professions have enjoyed the biggest boost to their pay packet? Hair and beauty salon owners rank top, with the average salary increasing by 42.2% in a single year: a pay rise of almost:- £8,500. Bar staff have also seen 1 of the highest pay rises while pulling pints, earning 29.7% more on an annual basis (£2,025). Not only do Information and Technology Directors earn 1 of the highest salaries, but they've also enjoyed a 27% pay rise year on year: the third highest of all occupations. 0er professions where pay rises have been abundant include:-glass makers (+26.6%), sports coaches (+25.9%), barristers (+25.6%), youth workers (+25.5%), health care managers (+24.2%), beauticians (+23.6%) and travel agents (+22.1%).

Bradley Post, MD of RIFT, commented:- "It continues to be an incredibly tough time for many where our household finances are concerned and with the dark clouds of economic uncertainty yet to lift, the last thing anyone needs is for their income to take a hit. Unfortunately, the figures show that many professions have seen a reduction in earnings, from crane drivers to dentists, bakers to engineers. However, this isn't the case across the board and there are actually more professions who have enjoyed a boost to their pay packet when compared to the previous year. Of course, it's unlikely that you would leave a higher paid job for a sector enjoying positive pay growth, but if you are working in a profession that has seen a reduction in earnings, it might be worth discussing a pay rise in 2023."