FVI

The Financial Vulnerability Index is a powerful tool designed to measure and monitor financial resilience both nationally and locally across the UK. Developed by Lowell in partnership with Opinium, the index combines Lowell’s Customer data with publicly available metrics to provide this one-of-a-kind view of financial resilience.

The tool enables policymakers, local authorities, and other key stakeholders to gain deep insights into the financial wellbeing of their communities, helping them make informed decisions to enhance financial resilience.

Users can access detailed Financial Vulnerability Index scores, along with their key components, for any county or parliamentary constituency, with quarterly data available since 2017.

Late arrears

0 %

Average credit use

0 %

Adults in default

0 %

Social benefits

0 %

Without emergency savings

0 %

Household finances showing early signs of improvement

Overall financial health is gradually improving, and is now at its strongest level since mid-2023. This follows a period where financial pressure rose sharply during the pandemic recovery and the cost-of-living crisis. The latest data suggests the peak strain may now be easing, particularly in the hardest-hit areas. However, vulnerability remains relatively high by historical standards, and the uneven pace of improvement shows many households are still experiencing financial pressure.

Strain on Britain’s most vulnerable cities show early signs of easing

Cities that historically had the weakest household finances are now seeing the fastest improvements. In places like Birmingham, Manchester and Liverpool, default rates are falling, reliance on benefits has declined and savings buffers are beginning to rebuild. Despite this progress, these cities remain among the most financially vulnerable in Britain. The improvements largely signal stabilisation after a period of acute financial strain rather than a full recovery.

London is missing out on the urban recovery

Household financial health in inner London has not improved in the same way as in other large cities. London has seen the largest increase in credit use and late arrears and is the only urban area experiencing a decline in emergency savings. High housing costs, heavy reliance on private renting and a labour market less exposed to minimum wage rises appear to be key factors. As other major cities are showing signs of stabilisation, London financial vulnerability persists.

Explore the results in detail:

Identify trends and patterns relevant to local areas

The Data Explorer enables you to explore the results of the Financial Vulnerability Index in granular detail, at a regional and constituency level. Users can find their region or constituency and view the data broken down by each indicator.

The tool gives users the ability to visualize the data to help identify trends and patterns relevant to their local area and understand the geographical relationships within the index.

How do we pull the index together?

We’ve built the index using data from Lowell’s customer database, the FCA Financial Lives Survey, NOMIS, and recent research by Opinium. The index looks at the following key measures:

Consumers in default (from Lowell)
Consumers in late arrears (from Lowell)
Average credit usage (from Lowell)
Consumers claiming social benefits (from NOMIS)
Consumers using alternative financial products (from Opinium)
Consumers without emergency savings (from Opinium)

Lowell’s data includes over 8 million records, which are analysed at a parliamentary constituency level and then used to create regional and national views of financial vulnerability.

We’d love to talk to you about the index and how we pull it together, contact us at parliament@lowellgroup.co.uk

image of a man wearing a high vis jacket

Lowell’s Financial Vulnerability Index

Key Insights