Households across the North West continue to feel the impact of financial pressures, according to new research from St. James’s Place (SJP), with many reporting worsening finances over the past year as rising living costs continue to squeeze household budgets.

SJP’s 2026 Financial Health Report reveals household wealth – including savings, investments and physical possessions – stands at £82,968 across the North West, below the national average of £104,329.

The research shows that more than a third (36%) of people in the North West say their financial situation has worsened over the past 12 months, compared to less than one fifth (17%) who say it has improved. Meanwhile, just a third (33%) describe themselves as financially comfortable, below the national average of 37%, while a quarter (25%) say they are struggling financially, compared to 21% across the UK overall.

For many, rising living costs remain the main driver. Among those whose financial situations has worsened over seven in ten (71%) in the North West cite increasing cost of living as a major factor impacting their finances over the past year, with over half (54%) pointing to increasing food and essentials costs. Meanwhile, over a fifth (21%) say their salary has not increased or has not increased enough.

A plan boosts financial health at every level

Against a backdrop of continued cost pressures and economic uncertainty, SJP’s research highlights the importance of having a financial plan in place to help build better financial health. Households with a financial plan report average wealth of £157,416, compared with £70,610 amongst those without one.

The benefits of planning are evident across all income groups, with those earning under £20k a year still £24,524 better off than those without a plan.

Having a plan in place is also found to positively impact wider financial wellbeing. Seven in ten (72%) say having a financial plan makes them feel more confident about their financial position, while half (51%) describe themselves as financially comfortable, compared with just 29% of those without a plan. Three quarters (76%) also say they feel financially resilient and able to cope with unexpected changes, compared to 52% of those without a plan.

Financial engagement varies across the UK

Despite the clear benefits of financial planning, only 40% of those in the North West have a plan in place to manage their money. While this is slightly above the national average, it falls significantly lower than London (46%), the region with the highest household wealth (£171,455). This highlights that while households across the region continue to face financial pressure, there remains an opportunity for more people to take proactive steps towards longer-term financial resilience.

Many households are feeling worse off, with living costs and heightened global uncertainty weighing on confidence and, understandably, affecting how people feel about their finances and the future.

In the North West, where household wealth sits below the UK average, the importance of taking a structured approach to money management is particularly clear. Our research shows that those who take a more structured approach to managing their money are often better placed to build wealth, feel more confident and stay resilient, regardless of income or circumstances.

At a time when so much feels outside of our control, it becomes even more important to focus on the things we can influence. Having a clear plan for your money, and taking small, consistent steps to manage it, can make a meaningful difference – helping people feel more in control and better prepared for whatever comes next.

SJP outlines simple steps to help build a financial plan:
Identify your financial goals – Start by being clear about what you want your money to do for you. This could include short-term goals, such as building an emergency fund or paying for a holiday, and longer-term goals, such as buying a home or saving for retirement. Clear priorities can help shape better decisions and make planning more manageable.
Understand your current position – Take stock of your income, outgoings, savings, debts and assets. Understanding where your money is going can help identify areas to adjust and create opportunities to save or invest more consistently.
Build financial resilience – Having a financial buffer is increasingly important. Building accessible savings for the short-term, to cover unexpected costs or changes in income can provide greater confidence in uncertain times. As our research shows, investing over the long term is also key when it comes to building financial resilience. Even small, regular contributions can build up over time.
Think about saving and investing for the long term – Cash savings play an important role, particularly for short-term needs. But longer-term goals require a longer-term approach. Where appropriate, investing can help build wealth over time, especially when started early and maintained consistently.
Review your plan regularly – Financial circumstances change. Reviewing your plan as your situation evolves can help ensure it remains aligned with your goals and priorities.
Consider seeking professional advice – For those who would benefit from additional support, particularly in more complex situations, professional advice can provide clarity and structure. As this report shows, those who seek advice are often better placed to navigate uncertainty and build stronger financial foundations.