The UK’s most financially literate areas revealed

Revolut has been a leader in rolling out financial services to customers via smartphones – Copyright AFP/File TORU YAMANAKA

South Hams in Devon tops the UK’s financial literacy ranking with a score of 76.76 out of 100, boasting a high credit score of 847 and only 1.12% of residents claiming benefits. This is reflective of regional variations across the UK when it comes to financial understanding.

Financial literacy is an ability to effectively manage the economic well-being of individuals with knowledge and financial skills.

This perhaps surprising revelation comes from a new study by the financial firm Suits Me. The research analysed financial metrics, including the average credit score, gross disposable household income per head, and the percentage of the population in need of debt advice, across all UK local authorities to determine which regions demonstrate the strongest financial literacy and management. Each metric contributed to a final score out of 100 for each area, which was used to rank them from the highest to the lowest.

The UK’s top 10 most financially literate areas

Hart in Hampshire secured second place with a score of 76.35, boasting the highest average credit score in the top ten at 876. The area also has one of the lowest rates of benefit claims at 1.06% and a substantial household income per head of £30,226.

Harborough in Leicestershire took the third position with a financial literacy score of 75.10. The district recorded an impressive credit score of 866 and relatively low benefit claims at 1.12%, alongside a disposable household income per head of £26,213.

Mole Valley in Surrey ranked fourth with a score of 74.60. The area has the second-highest gross disposable household income per head in the top ten at £35,330, demonstrating the strong link between income levels and overall financial literacy.

South Cambridgeshire completed the top five with a score of 74.11. The district recorded one of the highest credit scores on the list at 873 and a healthy disposable household income per head of £29,050, though slightly higher benefit claims at 1.23% compared to the top four areas.

East Devon secured sixth place with a score of 73.82. The area performed particularly well on debt metrics with only 6.62% of residents needing debt advice, the lowest figure in the top ten. East Devon also matched South Hams with 0.62% of residents having a ‘Help to Save’ account.

Ribble Valley in Lancashire ranked seventh with a score of 73.75. The district has the lowest benefit claims in the top ten at just 1.01%, though with a slightly higher percentage of residents needing debt advice at 11.35% compared to other top-performing areas.

Waverley in Surrey achieved eighth place with a score of 73.29. The borough boasts the highest gross disposable household income per head in the top ten at £36,306, though this is offset by a relatively high 11.65% of residents needing debt advice.

Broadland in Norfolk secured ninth place with a score of 73.28. The district has a solid credit score of 859 and relatively low rates of residents needing debt advice at 7.98%, despite having one of the lower disposable household income levels per head in the top ten at £22,208.

Rushcliffe in Nottinghamshire completed the top ten with a score of 73.01. The borough recorded the third-highest credit score in the top ten at 872, though it has the highest benefit claims of the top 10 at 1.27%.

At the other end of the scale, the study identified the UK’s least financially literate areas, with many large urban centres struggling compared to more rural and suburban districts.

Hull ranked as the UK’s least financially literate area with a score of just 23.30 out of 100. The city has a low average credit score of 721 and a high percentage of residents needing debt advice at 20.85%. The area also has a low gross disposable household income per head of £15,818 and a high rate of benefit claims at 3.72%.

Sandwell in the West Midlands was the second-least financially literate area with a score of 23.44. The borough recorded low scores across all metrics, with a credit score of 754, disposable household income per head of just £15,305, and a high 23.99% of residents needing debt advice.

Barking and Dagenham in London ranked third-lowest with a score of 25.32. The borough has a relatively low disposable household income per head of £19,246 compared to other London boroughs, with a high 27.61% of residents needing debt advice and 5.48% claiming benefits.