Financial Planning has fallen off the agenda for many UK people with only a third (34%) of them now having a financial plan, according to new research.

The number has fallen from almost two-fifths of people (38%) last year.

The figures are included in the latest St James’s Place’s Financial Health Index, which also showed that the number of people with a financial plan in London slumped from 63% to 37%.

In the east of England only 29% of people said they had a plan, compared to 42% a year ago.

However, it’s not all bad news as in Scotland Financial Planning is climbing up the agenda. Two-fifths (40%) of Scottish adults said they had a financial plan, up from 35%.

People are switching priorities as the cost of living crisis bites, said Alexandra Loydon, director of partner engagement and consultancy, St James’s Place.

She said: “The financial environment in the last year or so has impacted some more than others, and it’s likely that this will only be exacerbated in the near future, as the effects of double-digit inflation, high interest rates and turbulent markets continue to bite over the next few months.”

Almost half of the public said the cost of living is their main barrier to wealth growth, rising to 55% among those with household income below £10,000, compared to 36% of those with income above £80,000.

Inflation was the next most frequently cited barrier to wealth growth (24%), followed by the impact of low interest rates (21%).

The index also revealed the north-south wealth divide has significantly deepened, with financial health seven times higher in the south east than in the north east.

As the cost-of-living pressures continue, more than a third of the UK do not feel financially resilient, according to the index, while two-thirds do not feel financially comfortable.

The south east has the highest level of financial health in the UK, scoring 77.2 according to the survey, while the north wast has a score of just 11.4, down from 19.1 last year.

That highlights the impact high inflation and rising interest rates has had on wealth and wellbeing, as worse off regions in the north of England have regressed while better off regions in the south have seen an improvement in their scores.

the SJP UK Financial Health Index was developed in conjunction with the Centre of Economics and Business Research and first launched in November 2021. The latest survey was based on research conducted in November 2022.