Press release – Many Scots are one emergency away from debt
New findings from the Understanding Scotland Economy Tracker highlight the precarious financial position of many Scots. Significant numbers of people are just one unexpected bill away from crisis.
1 in 5 people (22%) cannot cover a £100 emergency expense without borrowing money
This figure doubles to 44% for a £500 emergency, demonstrating a widespread lack of financial resilience.
The research also exposes how economic insecurity is affecting wellbeing and productivity, with more than nine in ten (95%) respondents saying that people are less effective at work when financial stress disrupts sleep or nutrition. The latest research shows that one in four (26%) of Scots report having lost sleep due to concerns about money matters.
The findings reveal strong public support for structural solutions:
9 in 10 (89%) think employers have a responsibility to pay wages that meet people’s basic needs.
8 in 10 (80%) say that failing to meet basic needs now will cost more in the long term.
7 in 10 (70%) think we have a collective responsibility to maintain a safety net in tough times.
Women are especially likely to express these views:
9 in 10 (92%) of women say employers should pay enough to meet basic needs, 6% more than men at 86%.
Women are also more likely to understand the impact of unmet need today resulting in higher public costs later (84% v 77%)
There is less consensus around how to fund protections - 39% of respondents would pay more in tax to ensure an effective social security safety net, while 38% disagree.
Scott Edgar, Senior Research Manager, at the Diffley Partnership said:
“This data shows that while some economic indicators may be stabilising, many people in Scotland are still living with significant financial uncertainty. These pressures don’t exist in isolation, they can affect people’s health, their ability to work, and their overall sense of security. It’s important we understand the scale of the issue and the potential long-term impact on the economy and society.”
Susan Murray from the David Hume Institute said
“These findings confirm too many Scots continue to live on a financial knife-edge. When people lack the means to absorb even small shocks, it doesn't just harm their wellbeing, it undermines our collective economic potential. A resilient economy needs more financially secure households. The majority of the public clearly understands this connection with strong support for fair wages and a robust safety net. Sadly despite some economic indicators beginning to change, few Scots can see any light at the end of the tunnel”
ENDS
Notes:
The Understanding Scotland Economy Tracker received 2,326 responses from a representative sample of the adult population, aged 16+, across Scotland. Invitations were issued online using the ScotPulse panel, and fieldwork was conducted between the 1st-6th May. Results are weighted to the Scottish population (2023 estimates) by age and gender. The survey is conducted by the Diffley Partnership on behalf of The David Hume Institute.
