One in four people have no emergency savings, warns StepChange Debt Charity

^{4 June 2025}

Nearly one in four UK adults (23%), around 12.5 million people, have no savings to fall back on in a crisis, according to new research from StepChange Debt Charity. Four in five (78%) of those with no rainy day savings say they find it difficult to keep up with living costs. As cost of living pressures grind on, the charity is warning of increasing vulnerability to debt problems driven by rising bills and waning financial resilience.

The figures also show one in four (24%) UK adults are saving less now than they did one month ago, with the majority of those (63%) saying this is due to an increase in their essential household bills - one month after households saw bill rises across the board, as part of 'Awful April'.

The research exposes a savings gap that is hitting the most financially vulnerable groups the hardest. Further figures show:

• Three in five (62%) people in receipt of Universal Credit have no savings for a rainy day
• Almost two in five (38%) private renters have no savings for a rainy day
• One in three (33%) parents with at least one child under 18 have no savings for a rainy day
• Among the one in four (23%) UK adults with no rainy day savings, over one in five (22%) have used a credit card to pay for essentials in the last three months, compared to just 5% among those who have emergency savings

The YouGov poll comes as StepChange launches a new briefing, Somewhere safe to turn, which calls on the Government to invest in an ambitious Financial Inclusion Strategy. The charity wants to see:

• Support for those able to save to build a rainy day savings pot by expanding the Help to Save scheme and supporting employers to roll out sidecar pensions saving schemes
• Greater access to small crisis grants by making the £1 billion Household Support Fund permanent
• Safe, low-cost credit for those unable to save, including through a new national no interest loan scheme

The briefing finds four in ten of those who would need to borrow to cope with an unexpected expense could not afford to borrow after meeting their essential costs. Moreover, one in five UK adults report they have an impaired credit record, including factors such as having a poor credit score or a thin credit record, which means they are likely to struggle to access affordable credit.

As a result, many face an impossible choice between unaffordable borrowing, often leading to debt problems, and missing essential bills.

Vikki Brownridge, CEO at StepChange Debt Charity, said:

"Too many people have nowhere to turn in an unexpected financial emergency. It's not uncommon to rely on credit when finances are tight, but too many are being tipped into financial crisis because they don't have access to safe options to cope with unpredictable expenses. Unfortunately, at StepChange, unexpected costs followed by a subsequent reliance on credit is a driving factor behind so many of our clients' debts.

"The Government has a real opportunity to be ambitious in the upcoming Financial Inclusion Strategy. Building financial resilience must be a priority - not just through affordable credit, but by boosting saving and expanding access to crisis support for the groups most vulnerable to debt problems. This should include expanding the 'Help to Save' scheme, supporting employers to roll out sidecar pension saving schemes, and putting the crucial Household Support Fund on a permanent footing."

Notes to Editors

1. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,235 adults. Fieldwork was undertaken between 7th - 8th May 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). This includes a subset of 280 private renters, 167 people receiving Universal Credit, and 467 people with at least one child under 18.
2. UK population estimates are calculated by StepChange, based on ONS data
3. All other figures are from StepChange's new briefing Somewhere safe to turn which has been submitted to the Government's Financial Inclusion Committee.