The Impact of the Pandemic on Savings and Debt : Did the Experience of Scotland Differ From the Rest of Great Britain?

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Congreve, Emma (2025) The Impact of the Pandemic on Savings and Debt : Did the Experience of Scotland Differ From the Rest of Great Britain? Scottish Health Equity Research Unit, Glasgow.

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Abstract

Wealth can play an important role in shaping health outcomes. Unlike income, which reflects current resources, wealth captures longer-term financial security and can give a good indication of whether households will be resilient to shocks such as illness, job loss, or rising living costs. Households with greater wealth are better able to absorb unexpected expenses, maintain stable housing, and access goods and services that support good health, including nutritious food, warm homes, and opportunities for rest and recovery[i]. Conversely, low wealth or debt can increase financial stress and insecurity, which are strongly associated with poorer mental and physical health outcomes, reinforcing existing socioeconomic inequalities[ii]. In 2025, the Office for National Statistics released new figures on wealth and indebtedness from their regular Wealth and Assets Survey[iii], covering Great Britain (Northern Ireland isn’t included in this survey) for the period 2020-22. Wealth is made up of four categories: property wealth, physical wealth (i.e. moveable items such as cars), pension wealth, and financial wealth, which includes savings. Financial wealth provides the easiest (i.e. most liquid) place to turn in times of low income. The Wealth and Assets survey also reports on debt holdings, both secured and unsecured. Our analysis uses a methodology adapted from a Resolution Foundation report that looked at data on savings and debt in Great Britain during the pandemic (see Background section). In our analysis, we compare Scotland to GB figures. We find that: Savings · In common with households in Great Britain, there is evidence that lower-income households in Scotland were able to build savings during the pandemic. · The data indicates that households with lower-than-average income in Scotland may have experienced a relatively stronger improvement in savings compared with the GB average. · In both Scotland and GB, lower income households are still much less likely to hold a significant amount of savings compared to higher income households. Debt · The GB data shows that households across the income distribution paid down unsecured debt during the pandemic. · However, in Scotland, the data indicates that the poorest 40% of households instead accumulated more unsecured debt. · The lowest income households (poorest 20%) also reported a rise in ‘unmanageable’ debt.

ORCID iDs

Congreve, Emma ORCID logoORCID: https://orcid.org/0000-0001-6845-316X;
CORE (COnnecting REpositories)