Scottish Household Survey 2022: Key Findings

3. Finance

Overview

Historically, the proportion of households reporting they were managing well financially had been increasing, from 42% in 1999 to 56% in 2019. The levels at that stage suggested a period of recovery following a dip between 2007 and 2012, which may be explained in part by the economic downturn during that period. The most recent figures, for 2022, show a drop since 2019, with 50% of households reporting they were managing well financially (Table 3.1).

Financial difficulty by income and deprivation

The proportion of households reporting that they managed well financially was higher for those with higher household incomes than for those with lower income levels (Table 3.2). Of households with a net annual household income over £30,000, 60% reported that they were managing well in 2022, and 5% said that they did not manage well. The proportion of households with a net annual household income up to £10,000 reporting that they managed well was 31%, with nearly one in five (21%) saying they did not manage well – over twice the overall Scottish average of 9%.

Levels of perceived financial difficulty were higher in more deprived areas, as measured by the Scottish Index of Multiple Deprivation. In the 20% most deprived areas, 16% reported that they were not managing well financially, dropping to 4% for households in the 20% least deprived areas (Table 3.10).

Financial difficulty by group

As in previous years, single parent^[1] and single adult households were the most likely to report that they were not managing well financially (26 and 15% respectively), compared to the Scotland average of 9% (Table 3.3).

Of the different household tenures, owner occupiers were most likely to report they were managing well financially: 61%, compared to 24% for households in the social rented sector (Table 3.5).

Households relying mainly on benefits (including the state pension) were the most likely to say they were not managing well financially (17%), compared to households relying on earnings (7%). Where households relied on other sources of income (including occupational pension and other investments), 3% reported that they were not managing well financially (Table 3.6).

Households where the highest income householder (HIH) were male were more likely to say they managed well financially compared to those where the HIH was female (54% and 46% respectively) (Table 3.7).