Financial vulnerability surges to 27.7m during Covid-19 pandemic - FCA

Vulnerability shot up 15% in 2020

Jenna Brown
clock • 3 min read

The coronavirus pandemic has had a “profound and harrowing” impact on the financial resilience of people in the UK with 27.7 million now exhibiting characteristics of vulnerability, according to figures from the regulator.

The Financial Conduct Authority (FCA) Financial Lives Survey, conducted in February and October last year, revealed more than half the UK adult population suffered from poor health, low financial resilience or had faced recent negative life events. This was up 15% compared to February 2020 when 24 million were classed as vulnerable. The Covid-19 pandemic and resulting economic disruption resulted in more than a quarter of adults - 14.2 million - being described as having "low financial resilience" - meaning over-indebtedness or with low levels of savings or low or erratic earnings. That ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

2024 general election: Labour hits back with its manifesto release

2024 general election: Labour hits back with its manifesto release

‘Financial services are one of Britain’s greatest success stories’

Professional Adviser
clock 13 June 2024 • 1 min read
Where to next for the FSCS levy after recent developments?

Where to next for the FSCS levy after recent developments?

‘One positive aspect of the recent reduction is the successful recoveries’

John Netting
clock 03 June 2024 • 2 min read
Three key areas of regulatory focus for the advice profession

Three key areas of regulatory focus for the advice profession

'The only constant is change and this is certainly true for regulation'

Alex McGregor and Kris Armstrong
clock 24 May 2024 • 5 min read