DISPOSABLE INCOME IN SCOTLAND ON THE RISE

16th June 2014

· Scots have seen a four percentage point rise in disposable income over the last quarter

· People in Scotland are leading the country in terms of disposable income alongside London

· 67 per cent of people in Scotland choose to put money aside each month

People in Scotland have seen a four percentage point increase in their disposable income over the last quarter, according to a new report out today. On average, people in Scotland now have nine per cent of their salary left over each month after essential bills have been paid.(1)

The findings come from the latest Disposable Income Index from ISA provider, Scottish Friendly, which examines people's attitude towards saving and investing. According to the report, the increase in disposable income has prompted a rise in the levels of saving with 67 per cent of people in Scotland now choosing to put money aside each month; up eight percentage points since the last index.

Looking to the future, Scots are starting to feel more confident about their financial situation, with just 15 per cent of people believing that their financial situation will worsen in the next three months, down from 19 per cent last quarter.

One in five (22 per cent) Scots say that in the next three months their focus is to pay off their debts, while a further 11 per cent say their top priority is to avoid getting into debt. Both are good indicators of an improving savings and investment culture in the UK.

Neil Lovatt, product director at Scottish Friendly, said: "The results show a stronger mood of personal responsibility amongst savers in Scotland, across all income levels. Debt is a preoccupation for many, and it is encouraging to see that repaying and avoiding it is amongst the top priorities for Scottish people today."

Alongside London, people in Scotland are leading the country in terms of disposable income. Both regions have, on average, £263 left over each month after essentials are paid for. Behind Scotland and London, there is a significant gap before the third best well off region, Yorkshire and Humberside, where there is an average disposable income of £217. Wales and the North East are lagging at the bottom of the table, with £193 and £182 left over each month, respectively.

Average month disposable income
Scotland
£263
London
£263
National average
£219
Yorks & Humberside
£217
South East
£215
North West
£210
West Midlands
£207
South West
£206
East Midlands
£204
Northern Ireland
£196
Wales
£193
North East
£182