Saving money is often framed as a matter of discipline or budgeting. However, new research suggests that for a growing number of UK workers, the issue is more fundamental. An analysis of salaries, rents, and essential living costs across 56 major UK cities shows that saving money is now impossible for average earners in a significant portion of the country.
The research by The Investors Centre found that in 10 of 56 cities (18%) a single person earning the median local salary cannot afford to rent a one-bedroom flat, cover basic living costs, and save anything at all — even before discretionary spending such as clothing, entertainment, or holidays is considered. In several cities, essential spending alone exceeds take-home pay.
London sits at the end of the scale. While the average London salary is £43,629, an individual would need to earn approximately £64,930 per year to rent a one-bedroom flat, cover essential bills, and save a modest £200 per month, leaving an annual shortfall of £21,301 for the typical worker.
Across all cities analysed, the average worker has just £532 per month left after rent and essential bills. At that level, building a basic three-month emergency fund would take more than three years, assuming no unexpected expenses. In the worst-affected cities, building any emergency buffer at all is impossible without taking on debt.
Analysis Results
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Metric
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Finding
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Cities where saving is impossible
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10 (18%)
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Average disposable income (UK)
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£532 per month
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London salary shortfall
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£21,301 per year
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Southern cities in “impossible” category
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9 of 10
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Responding to the findings, Thomas Drury, Co-Founder and Senior Trading Analyst at The Investors Centre said: “When people have no capacity to save, even relatively small shocks can cause lasting damage. A £500 car repair or boiler breakdown is often put on credit at 20%+ APR, adding £100 or more in interest. This ‘poverty premium’ creates a cycle where emergencies turn into debt, and debt further erodes the ability to save.”
The data reveals a stark geographic divide. Of the ten cities where saving a median salary is classed as impossible; nine are in Southern England, including London, Brighton, Cambridge, Oxford, Bath, and Bristol. In Brighton, the average earner is left nearly £200 per month short, while in Cambridge and Oxford the gap exceeds £150 per month.
By contrast, cities in the North, Midlands, Scotland, and Northern Ireland offer far stronger savings potential. In places such as Durham, Carlisle, Derry, Hull, and Sunderland, average earners can save between £600 and £700 per month, largely due to lower housing costs. A median earner in Durham could save around £712 per month, enough to build a three-month emergency fund in just five months.
Over time, these differences compound significantly. A worker saving £700 per month in a lower-cost city compared with someone in London who is £400 per month in deficit represents a swing of more than £13,000 per year. Over a decade, invested at average market returns, that gap can translate into hundreds of thousands of pounds in lost wealth.
The analysis highlights the real-world impact of having no savings. When unexpected costs arise — such as replacing a work laptop or covering emergency childcare — workers often have little choice but to rely on high-interest credit or overdrafts, turning one-off expenses into ongoing financial strain and leaving them more vulnerable to future shocks.
What Can Workers Do If Saving Feels Impossible?
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Reduce housing costs where possible, including house-sharing or relocating to lower-cost regions.
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Increase income strategically through pay negotiation, job changes, or upskilling.
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Automate small savings, such as £25–£50 per month and use a reputable investment review platform to identify suitable savings and investment options.
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Build a small emergency buffer to avoid high-interest credit when unexpected costs arise.
Methodology
The calculations are based on ONS ASHE median salary data, the ONS Private Rental Index, and standardised essential costs including rent, energy, council tax, food, transport, utilities, and communications. The methodology focuses on 56 UK cities based on a single person renting a one-bedroom flat alone and excludes discretionary spending. Negative figures indicate that essential spending exceeds take-home pay.