The UK’s most financially resilient cities

1. Gloucester

Our study found that Gloucester is the UK’s most financially resilient city based on key financial well-being indicators. With only 35 financial-worry-related searches per 10,000 people monthly, residents appear relatively confident about their finances. While they may seek advice from sources beyond Google, the low search volume could suggest a general sense of financial security.

Gloucester’s high employment rate of 90.8% further supports its resilience, offering residents stable job opportunities. Although the city’s average weekly median pay of £578 is somewhat lower than in other areas, the combination of steady employment and low financial concern highlights its ability to manage economic pressures effectively.

2. London

London ranks second as the most financially resilient city in the UK. With an average weekly median pay of £968, London boasts the highest wages in the country. However, it's important to factor in the city’s high cost of living, which can offset those higher earnings.

Employment levels in the capital average 75.1%, reflecting a relatively strong and stable job market. While slightly lower than some of the other top contenders for financial resilience, this figure remains healthy and contributes positively to the city’s overall financial stability.

When it comes to financial worry, Londoners conduct 67 related searches per 10,000 people each month. While this figure reflects some level of concern, it remains lower than in many other cities.

3. Oxford

Oxford ranks as the third most financially resilient city in the UK, based on a combination of low financial concern and strong economic indicators. The city sees an average of just 22 financial-worry-related searches per 10,000 people each month. This may indicate lower levels of financial anxiety among residents, though individual circumstances will vary. Oxford’s employment rate stands at 77.8%, suggesting a relatively stable job market with available opportunities.

The city’s weekly median pay of £719, one of the highest in the country, further supports its financial resilience. Higher-income levels, when coupled with stable employment, can enhance households' capacity to manage rising costs effectively.

Although these top 10 cities are more financially resilient than the other cities on the list, there will still be individuals and areas within each of them that could benefit from financial advice and support. This underscores the continued need for easily accessible financial help across the UK for all.

The UK cities most open to financial advice

Our analysis has also identified areas where residents may be more receptive to financial advice based on the higher number of financial worry-related searches per 10,000 people and lower employment levels.

1. Newcastle

Newcastle ranks first, with 107 average monthly searches per 10,000 people, the highest on the list, indicating that many residents are actively seeking financial advice online. Top search topics include terms related to the cost of living and interest rates, suggesting that many residents may be concerned about rising expenses and are seeking guidance on budgeting, debt management, and how changes in interest rates could affect loans or mortgages.

Despite a weekly median pay of £600, close to the UK average of £663, Newcastle’s employment rate of 69.4% is lower than that of more financially resilient cities. The combination of lower employment and elevated search volumes may highlight residents' proactive approach to addressing financial challenges through available resources.

2. Birmingham

Birmingham ranks second among cities most open to financial advice, with an average monthly search volume of 99 for financial worry-related terms per 10,000 people. This suggests that many residents are seeking financial guidance online. Notably, the top search term is ‘food bank near me,’ with an average monthly search volume of 2,400, reflecting increased reliance on food banks amid financial pressures.

The city’s weekly median pay is £629, slightly below the UK average of £663, and its employment rate stands at 66.1%, lower than the national average of 75%, indicating potential challenges in job availability or stability.

3. Manchester

Manchester ranks third, with 99 monthly searches per 10,000 people for financial worry-related terms, indicating a significant level of financial concern among residents. Many are prompted to seek help or guidance.

Manchester’s weekly median pay of £679 exceeds the national average, indicating relatively competitive wages. However, the city’s employment rate of 65.9% is notably lower than the UK average of 75%. This disparity could be a contributing factor to elevated financial anxiety, despite higher-than-average pay levels.

Expert tips for managing an increasing cost of living

The cost of living has increased by 2.3% in the past year, and many households in the UK are facing financial pressures. While it may sometimes feel difficult to find support, help is available, and taking the first step to seek advice can be an important step toward improving your financial situation. To help with managing rising expenses, Karen Davison, Head of Unsecured Arrears & Bereavement at The Co-operative Bank, has shared ways to help you navigate these challenges and take control of your finances.

Savings: The 50/30/20 rule

One recommended approach to saving is the 50/30/20 rule, a method that allocates 50% of income to essentials (e.g., rent or mortgage, bills, groceries), 30% to discretionary spending, and 20% to savings. For instance, someone earning £2,000 per month might allocate £1,000 to essentials, £600 to discretionary spending, and £400 to savings.

It is important to note that this rule is a general guideline and may not be feasible for everyone. Individuals facing financial difficulties should consider seeking tailored advice from a financial adviser.

Energy: Reducing your gas and electricity bills

Energy costs have been steadily increasing, making it essential to regularly review energy bills and consider whether switching suppliers or tariffs could lead to savings. However, it is advisable to check for any fees or potential cost increases before switching.

For those struggling to pay energy bills, it is recommended that they contact their energy supplier. Suppliers may offer support in the form of payment plans, extensions, or breaks to help ease financial strain.

Simple measures to improve energy efficiency at home, such as turning off appliances when not in use and turning off lights, can also lower monthly energy costs over time.

Groceries: Save money on the weekly food shop

To reduce grocery costs, consider signing up for loyalty cards at frequently visited stores. These cards can provide points, discounts, or vouchers that help lower overall expenses. Additionally, linking these cards to a current account may assist with tracking spending and rewards.

Looking for coupons and discounts in-store, online, or through brand promotions is another effective way to manage grocery bills. Careful planning and budget management can further enhance savings.

For more information on how to manage your money, visit The Co-operative Bank’s Money Management Hub.

Sources & Methodology

This analysis identified the most financially resilient cities in the UK by examining three key factors: search volume for finance-related queries, employment rates, and average weekly pay. Data was collected from multiple sources to assess financial resilience across 30 cities.

It's important to note that search data may not fully capture financial confidence or resilience, as individual behaviour varies widely. Some people may seek financial advice from sources other than online searches, while others might not search at all despite experiencing financial concerns.

1. Google Keyword Planner (Financial-worry-related search volume)

• Search volume for finance-related terms (e.g. “cost of living”, and “interest rates”). Data for each city was retrieved for the last 12 months. The sum of the search volume (SV) for each term was calculated per city. The total search volume was then adjusted per 10,000 people to normalise the data.

2. ONS Employment Data (Employment Rate)

• Employment rate (ages 16-64) for each city. Employment rate data for the period July 2023 to June 2024 was downloaded from the Office for National Statistics (ONS) and recorded for each city.

3. ONS Weekly Pay Data (Weekly Median Pay)

• Weekly median pay across cities. The 2024 provisional edition of the ONS dataset was downloaded, and the median gross weekly pay for each city was recorded.