Many UK towns and cities are currently grappling with severe financial challenges, often likened to being stuck in a financial blackhole.

Experts believe these crises stem largely from escalating costs in social care, homelessness services, and other essential statutory provisions, exacerbated by years of funding reductions and mounting inflationary pressures.

New data has listed the 18 local authorities where financial vulnerability is commonplace and many are cut off from cash.

Out of 361 local authorities in the UK, Fair4All Finance has identified 18 areas where over half of the adult population faces financial vulnerability, while fewer than half of residents can access cash within a one-mile radius.

The research concluded that South Tyneside is the worst area for these problems. 

The town has one of the highest rates of adults living in financially vulnerable circumstances (58 percent) and one of the lowest percentages of people with access to cash within one mile (27 percent).

Harlow, Sunderland, and Blackburn with Darwen were also found to be significantly affected by financial vulnerability, while Peterborough, Middlesbrough, and Sunderland report the lowest levels of cash access for residents.

Diane Burridge Director of Development at Fair4all Finance said: “The rising number of adults living in financially vulnerable circumstances is a wake-up call for systemic change. With 38% of the UK adult population now facing financial difficulties, these findings underscore the urgent need for coordinated, system wide efforts to create a society where financial stability is not a privilege but a minimum standard.

“Access to cash is critical for millions who rely on it to manage their daily expenses, yet it’s increasingly out of reach for many communities. Beyond cash, we must prioritise improving financial inclusion by ensuring affordable and accessible financial services are available to everyone, especially in underserved areas.

“Policymakers, businesses, and financial institutions must work together to develop inclusive policies and products that provide people with the tools and resources to build financial resilience. Only by addressing these challenges collectively can we build a financial system that truly supports everyone, regardless of their circumstances or location.”