UK financial happiness nosedived in the run-up to Sir Keir Starmer’s resignation in June, according to the latest findings from Dynamic Planner’s Financial Happiness Index.
The index, which draws on responses from around 4,000 people per month, found the ongoing political uncertainty had a direct impact on financial happiness levels.
It fell by 19% between 20th-21st June, ahead of the prime minister’s resignation on 22nd June.
Dr Louis Williams, head of psychology and behavioural insights at Dynamic Planner, said: “Financial happiness started the month on a relatively strong footing, with scores for financial resilience running higher in the first half of June than across May.
“However, that momentum broke sharply around mid-month and did not fully recover. A dramatic fall came around the 20th-21st of June, as political uncertainty reached its peak ahead of Keir Starmer’s resignation announcement on the 22nd of June.”
Wiliams said emotional resilience in particular fell sharply, although financial resilience proved fairly stable throughout the period, suggesting an underlying sense of financial security remained largely intact, with a score of 4.50 out of 5 for the month.
“The overall monthly averages in June reflect the impact of political uncertainty, as scores in the second half dragged down what had been a reasonably positive start leading to a slightly lower UK financial happiness level than the previous month,” he added.
The index is based on 12 questions developed from Dynamic Planner’s financial wellbeing questionnaire. It measures three pillars: financial resilience which looks at day-to-day stability; emotional resilience, which explores the ability to cope, adapt and feel progress; and financial knowledge and confidence.
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