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Despite a sharp increase in monthly disposable income, UK workers earning up to £40,000 are still just a fraction of what they earn, according to the latest Vanquis Financial Wellbeing Index (VFWI). The report reveals a widening gap between growing financial opportunity and actual saving behaviour.

The study, which tracks the financial realities of lower and middle-income earners and analysed data from 2,508 people across a two-year period from Q1 2023 to Q1 2025, found that the average amount of money left over each month surged from 3% of income in the final quarter of 2024 to 12% in the first quarter of 2025. This improvement was largely fuelled by a 2% rise in incomes and a 5% drop in expenses. However, the extra cash is not making its way into accounts.

Workers saved just 1.33% of their income in Q1 2025, up only slightly from 1.16% the previous quarter.

Persistent financial stress appears to be a major factor, with 40% of respondents saying money worries are harming their wellbeing. In response, more than a third (35%) have taken on second jobs, and 42% are working longer hours to make ends meet.

The report also highlights the role of numeracy confidence in financial resilience. Among workers earning up to £40,000, nearly a quarter (24%) feel anxious about using maths, 28% avoid jobs involving numbers, and a third (33%) do not consider themselves "numbers people."

Vanquis suggested that boosting confidence with numbers could help more people turn spare cash into lasting savings.

The missed opportunity is significant, according to the bank. A worker earning £40,000 who saved just 5% of their income each month could amass nearly £20,000 in savings over 10 years at current interest rates.

Saving the full 12% average surplus could yield more than £47,000 over the same period.

Ian McLaughlin, CEO of Vanquis Banking Group, said: "Improving numeracy confidence is a powerful tool in boosting financial wellbeing. People who feel confident with numbers are consistently better at budgeting, building savings, and avoiding problem debt - key behaviours that build resilience.

"Our latest Financial Wellbeing Index shows that more UK workers are ending the month with spare cash, an encouraging sign. But persistent vulnerabilities remain, such as low savings rates and financial stress. If we want people to move from just surviving to truly thriving, building confidence with everyday numbers must be part of the solution."

Sam Sims, CEO of National Numeracy, added: "The Vanquis Financial Wellbeing Index shows just how powerful number confidence can be in shaping our financial lives. While many are motivated to improve their numeracy for personal growth or better money management, too many still feel anxious or unsure of its value. Bridging that confidence gap isn't just about maths - it's about giving people the tools to move from just getting by to building real financial security."