The Dynamic Planner Financial Happiness index ticked up very slightly in September, despite ongoing concerns about inflation, UK borrowing and a stagnant economy.
The index reached 3.94 in September, a 0.03% uptick from August, while financial knowledge and confidence, emotional resilience, and financial resilience all increased slightly.
Dr Louis Williams, head of psychology and behavioural insights at Dynamic Planner, said: “Last month’s biggest single-day rise came on 9 September, the day the ONS announced UK GDP had grown by 0.4% and described by news outlets as more hopeful than many had expected given the circumstances.”
Meanwhile, the index hit its lowest point on 25 September, as geopolitical anxiety and rising fuel prices hit confidence. “Even so, financial happiness remains at its highest level since November 2024.
“The calm may not last, however,” Williams noted. “On 30 September, Burnham’s ‘triple shock’ headline landed alongside warnings that energy prices are set to soar in the new year, potentially the steepest rise in four years, a combination that should, if anything, point toward lower sentiment ahead.”
With pre-budget uncertainty on the agenda, and it being unclear how many of Burnham’s spending commitments might be paid for, the Budget could end up being a drag on financial confidence.
“This is exactly the kind of pre-Budget uncertainty that has weighed on financial happiness before, most notably last November, when an error saw the full Budget document published more than 90 minutes ahead of the chancellor’s speech,” Williams said.
“Whether October repeats that pattern may depend less on what the Budget contains than on how much is leaked or speculated on beforehand.”
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