Scotland’s onshore GDP grew by 0.9% in June, according to statistics announced today by the Chief Statistician. Output remains 2.1% below the pre-pandemic level in February 2020.
Services sector output grew by 1.2% in June, with increases in seven of the 14 subsectors. The largest contribution to growth was from accommodation and food services for the third month in a row as activity continued to pick up after the easing of restrictions.
Output in the production sector increased by 0.5% overall, with growth in the electricity and gas supply subsector offset by falls in manufacturing and water and waste management. Output in the construction sector is estimated to have fallen by 1.4%, broadly in line with the UK as a whole over the course of the latest quarter.
Using the experimental monthly statistics for Quarter 2 as a whole (April to June), GDP is provisionally estimated to have grown by 4.9%, reflecting a recovery in output after the fall of 1.8% during the lockdown restrictions in Quarter 1.
Scottish Secretary Alister Jack responds to June figures
Scottish Secretary Alister Jack said: “While today’s figures show some resilience, we still face challenges. A strong, sustainable recovery remains our priority.
“The UK Government put unprecedented measures in place from the very beginning of the pandemic to protect lives and livelihoods. That’s included supporting the jobs of nearly a million people in Scotland through furlough and with unprecedented financial help for the self-employed.
“More than 90,000 businesses have benefited from business loans and VAT cuts have kept firms in the hardest hit sectors afloat.
“We’ve provided the Scottish Government with more than £14.5 billion in additional funding, £1.5 billion has been invested in growth deals across Scotland and our new Levelling Up and Community Renewal Funds will benefit communities right across the UK.
“In driving our economy into recovery, our Plan for Jobs will help more people get back into work and the success of the UK Government-funded vaccine programme is paving the way for us to build back better and stronger.”
The Monthly GDP Estimate for June 2021 is available at:
Regions and nations of the UK blueprint for how NOT to deliver the green jobs revolution, says GMB Union
GMB, the energy union, has said the UK must learn from its own energy and industrial policy failures if it is to set the standard at the COP26 summit in Glasgow.
The union’s call comes after Shadow Business Secretary Ed Miliband said Boris Johnson must take ‘personal responsibility’ for the talks.
Gary Smith, GMB General Secretary, said: “Climate justice and economic justice must go hand-in-hand -which means delivering the jobs transition to help reach net zero.
“But with the world coming to Glasgow, the UK isn’t any closer to this than it was in 2015.
“The regions and nations of the UK are a blueprint for how not to deliver the green jobs revolution. Look at Scotland and the broken promises of 28,000 offshore wind manufacturing jobs and “a Saudi Arabia of renewables”. Instead supply chains have been starved of work and investment.
“Despite this, our political class persist in playing fast and loose with the futures of energy workers, and with security of supply.
“This is not how you take working class people with you on a journey to net zero.
“The UK can’t set the standards at COP26 unless we start learning the lessons from our own failures on energy and industrial policy.”
Covid-19 has had a profound impact on Scotland’s economy, but the cost of the crisis has not been shared evenly. What can we do about it?
About this event
Join us on Tuesday the 24th of August to hear from leading economists and trade unionists about the parts of Scotland’s economy that have prospered during the Covid-19 pandemic, the potential long-term economic impacts, and how trade unions and policymakers can respond.
Speakers will include:
• Laurie Macfarlane, Economics Editor at openDemocracy and Head of Finance at the UCL Institute for Innovation and Public Purpose. Prior to this Laurie was Senior Economist at the New Economics Foundation.
• Christine Berry, economist, writer, and co-author of ‘People Get Ready! Preparing for a Corbyn Government’. Christine was recently appointed as Director of the thinktank IPPR North.
• Jennifer McCarey, Chair of Glasgow Trades Council.
• Richard Hardy, National Secretary of Prospect, a Commissioner on the Scottish Government’s Just Transition Commission, and sits on the STUC General Council.
Public Health Scotland supports retaining the £20 a week uplift to universal credit and working tax credits, brought in by the UK Government in April 2020, to help create a Scotland where everybody thrives.
The social security top-up payment was introduced in April 2020 to help low-income households deal with the economic impact of the COVID-19 pandemic, and is due to expire in October.
The evidence is becoming stronger that increasing the incomes of the poorest, including by increasing means-tested benefits, can help narrow the gap in life expectancy and improve mental health and wellbeing.
All of those families affected claiming working tax credits are already in employment, as are 35% of people claiming universal credit. Another 31% of people claiming universal credit have health problems or caring responsibilities which compromise their ability to secure and retain jobs. Therefore, focusing on getting people into work, in itself, will not be sufficient.
Martin Taulbut, Public Health Intelligence Adviser at Public Health Scotland said:“People with higher incomes are healthier and live longer. Experiencing material hardship can have a profound direct impact on health by affecting our ability to buy the goods and services that support good health and underpin healthy life expectancy.
“The increase in value of universal credit and tax credits has reduced poverty, protecting the physical and mental health of low-income families and supporting working-age adults’ ability to find and keep good work. Decreasing the value of means-tested benefits is likely to result in a decline in the (already poor) health of the unemployed and low-income families, particularly after the experiences of the COVID-19 pandemic.
“As well as enabling families to live healthier lives now, action taken to improve and protect the health of children from early in life pays dividends for decades. By embedding health and wellbeing into policy decisions across areas of economy, employment and mental health, Scotland has an opportunity to make real progress on national outcomes.”
TUC calls for permanent short-time working scheme to protect jobs in times of economic crisis and change
TUC says government must build on the success of furlough – and set up a permanent scheme to deal with big disruptions to jobs in the future, like the transition to net zero, future pandemics and technological change
Periods of industrial change have too often been mismanaged and led to increased inequality – a short-time working scheme would help prevent this, says TUC
Union body warns of job losses amid abrupt end to furlough scheme
The TUC is calling on the government to establish a permanent short-time working scheme as “a post pandemic legacy” to help protect working people through periods of future economic change.
The TUC says the furlough scheme, while far from perfect, is one of the major successes of government policy during the pandemic, protecting millions of jobs and livelihoods.
On the back of the success of the furlough scheme, the union body is urging government to build on furlough – “not throw away its good work” – with a permanent short-time working scheme to make the labour market more resilient in times of change and crisis.
The union body adds that because of the UK transition to net zero and the increased uptake of new technology, this is “hugely relevant”.
Case for a short-time working scheme
In a new report, Beyond furlough: why the UK needs a permanent short-time work scheme, the TUC says the case for a short-time working scheme is clear, citing significant benefits for workers, firms and government. The union body says for workers, a short-time working scheme would:
reduce the risk of workers losing their jobs in times of crisis
protect workers’ incomes – particularly as short-time working schemes are usually more generous than unemployment benefits.
prevent widening inequalities – protecting women, disabled workers and BME workers who tend to lose their jobs first in a recession due to structural discrimination
And for the government, it would:
protect against long-term unemployment, and the subsequent devastating impacts on communities
help stabilise the economy, and encourage a faster economic recovery as workers continue to spend their wages
save money, as the cost of furlough schemes is often below the cost of unemployment benefits, particularly where costs are shared with employers.
For employers, the TUC says that such a scheme would produce significant savings on redundancy, training and hiring costs, as they enable firms to keep skilled workers on their books.
The union body points out that the UK is an anomaly among developed nations in having no permanent short-time working scheme to deal with periods of industrial disruption and weak demand.
In the OECD, 23 countries had short-time working schemes in place before the coronavirus pandemic, including in Germany, Japan and many US states.
Turbulent times ahead
The TUC predicts that the UK economy is likely to face significant risks in the future – be it from climate change and the transition to net zero, new technologies such as AI, new variants or another pandemic. All could cause unpredictable and widespread disruption in the labour market – causing big spikes in unemployment and business failure.
The TUC cites failed attempts to manage industrial change in the past, which “left communities abandoned” and played a major role in the widespread regional inequality we see today.
The union body says that if the government is serious about levelling up, it will put in place a permanent short-time working scheme to prevent inequalities spiralling – adding that a short-time working scheme could play a vital role in achieving a ‘just transition’ to net zero.
Criteria for accessing scheme
The TUC says the scheme should be governed by a tripartite panel bringing together unions, business and government, which should be tasked with designing the criteria for the new scheme.
In designing the scheme, the TUC says the panel should take into account best practice from existing global schemes. The union body has set out the following conditions which it says must be in place for accessing a short-time working scheme:
Workers should continue to receive at least 80 per cent of their wages for any time on the scheme, with a guarantee that no-one will fall below the minimum wage for their normal working hours
Any worker working less than 90 per cent of their normal working hours must be offered funded training.
Firms must set out a plan for fair pay and decent jobs
Firms should put in place an agreement with their workers, either through a recognised union or through consultation mechanisms.
Firms must demonstrate a reduction in demand – which can include restructuring
Firms should commit to paying their corporation tax in the UK, and not pay out dividends while using the scheme.
The scheme should ensure full flexibility in working hours.
There should be time limits on the use of the scheme, with extension possible in limited circumstances.
TUC General Secretary Frances O’Grady said: “Everyone deserves dignity and security at work. The pandemic shows how an unexpected economic shock can wreak havoc on jobs and livelihoods with little warning.
“In a changing and unpredictable world – as we battle climate change and new technologies emerge – a permanent short-time working scheme would help make our labour market more resilient and protect jobs and livelihoods.
“Too often in the past, periods of economic and industrial change have been badly mismanaged – increasing inequalities and leaving working people and whole communities abandoned.
“Setting up a ‘daughter of furlough’ to provide certainty to workers and firms through future industrial change would be a fitting pandemic legacy.
“Furlough has been a lifeline for millions of working people during the pandemic. Now is the time for the government to build on the success of furlough with a short-time working scheme – not throw away its good work.”
Furlough warning
The call for a permanent short-time working scheme comes exactly six weeks before the furlough scheme is set to end – the date at which employers are legally obliged to start consulting on planned redundancies with their staff.
The TUC is warning the abrupt end to the furlough scheme will cause unnecessary job losses and may harm the country’s economic recovery.
Recently, aviation unions have also been raising concerns about the sudden end to the furlough scheme and the loss of jobs in the sector.
On the ending of the furlough scheme, Frances said: “The jobs market is still fragile, with more than a million people still on furlough.
“An abrupt and premature end to the furlough scheme will needlessly cost jobs and harm our economic recovery.
“Instead of pulling the rug out from under the feet of businesses and workers, the chancellor must extend the furlough scheme for as long as is needed to protect jobs and livelihoods.”
Captain Martin Chalk, Acting General Secretary of BALPA said: “The UK aviation sector is the only industry to remain effectively in a lockdown.
“It employs about one million workers directly and ONS statistics show that 57% of remaining employees in air transport companies remain on furlough.
“The scale of jobs at risk of redundancy when the furlough scheme ends is self-evident, yet the footprint of aviation must not be missed – one in four constituencies has over 1,000 people employed directly by aviation companies.
“If the Chancellor chooses not to extend furlough, the effects will be felt by workers, communities and businesses right across the country.”
Diana Holland, Unite Assistant General Secretary, said: “Aviation is crucial to the UK’s economic recovery. It needs furlough support to continue while Covid restrictions apply.
“Airports and aviation support thousands of jobs. Without support all are at high risk.”
– The full report Beyond furlough: why the UK needs a permanent short-time work scheme is here:
First Minister Nicola Sturgeon and representatives from Scotland’s trades unions led by STUC General Secretary Rozanne Foyer will meet later today (Thursday 12 August) to discuss key issues affecting workers as Scotland recovers from the coronavirus (COVID-19) pandemic.
Matters such as the need for the UK Government to extend the furlough scheme and reverse plans for damaging cuts to Universal Credit that will see households lose out on over £1,000 per year are on the agenda, as well as discussions on how to ensure workers’ needs are protected as Scotland’s economy undergoes transformation to net zero.
The Scottish Government has written to the UK Government on seven occasions to call for the £20-per-week uplift to Universal Credit to be made permanent and extended to legacy benefits.
Analysis from the Joseph Rowntree Foundation indicates that cutting Universal Credit at the end of September will pull 500,000 people across the UK, including 200,000 children, into poverty.
Speaking ahead of her biannual meeting with the STUC, First Minister Nicola Sturgeon said: “We are committed to a just transition to net zero, making sure we don’t leave individuals or communities behind – and we must ensure we incorporate the same fairness as we emerge from the pandemic to deliver greater, greener and fairer prosperity as the economy recovers.
“Partnership with unions is key to making sure that workers are represented as part of that process, therefore communication and collaboration between unions and Government is absolutely essential.
“How we emerge from the pandemic – and support workers and employers through that economic recovery – will not only be crucial to safeguarding the livelihoods of people hit hardest by the impacts of COVID, but will inform our work as we plan for a just transition to a net zero economy.
“As economic activity is restored, businesses and workers will still require support from the furlough schemes as they move through recovery. Our focus is on helping them to doing this.
“Not all of the levers are in our hands however, and clarity is urgently needed from the UK Government on whether it will reverse its plans for harmful welfare cuts, extend furlough, and protect jobs as restrictions ease and the economy recovers.
“If not we must see the detail on what support will be put in place to ensure those hit hardest by the economic impacts of COVID aren’t left out in the cold.”
STUC General Secretary Rozanne Foyer said: “We are meeting the First Minister at a critical moment. Our focus is on building a recovery from COVID that creates a more equitable Scotland with fair work as a driver of economic transformation and sustainable economic growth. To achieve this and to bring about a just transition we need to create well-paid, unionised, green jobs in the public and private sectors.
“Our priorities include public sector pay, transport and a future Scottish National Care Service and we look forward to raising these issues with the First Minister.
“We share the Scottish Government’s call for an extension of the furlough scheme, for the £20-per-week uplift to Universal Credit to be made permanent and for the devolution of further borrowing powers to drive a fair recovery.”
Chancellor of the Exchequer Rishi Sunak yesterday praised the “inspiring” people and businesses of Scotland during a visit to meet those supported by the UK Government’s £352 billion Plan for Jobs.
Rishi Sunak travelled to Fife, Edinburgh and Glasgow where he visited several businesses that have returned workers from furlough, held a roundtable of Scottish business leaders and saw how Scotland is creating jobs and leading our green recovery.
Around one in three jobs in Scotland have been supported by the UK Government’s support package and more than 90,000 Scottish businesses received more than £4.1 billion in loans since the start of the pandemic.
The Chancellor’s visit came as new figures released yesterday show that the number of people in Scotland on furlough has halved in the last three months, with just 141,500 jobs still furloughed.
Chancellor of the Exchequer Rishi Sunak said:“It’s been inspiring to hear stories of people and businesses in Scotland that are now starting to feel the weight of the pandemic lifting off them as they get back to work – our Plan for Jobs is working and it’s great to see people succeeding after a year of uncertainty.
“It’s been a challenging time but the UK Government has delivered one of the most generous packages of support in the world, protecting one in three Scottish jobs.
“Scotland will be key in ensuring the UK’s economic success – creating jobs, powering our growth and driving a green recovery by hosting COP26 later this year.”
During the visit, the Chancellor toured the Offshore Renewable Energy Catapult Turbine in Leven, Fife. The turbine is the leading technology innovation and research centre for offshore renewable energy.
He met SMEs who have used the turbine for development and have benefitted from UK Government funding for green ventures.
The Chancellor highlighted the important contributions Scotland makes to the UK, including towards the UK’s Net Zero transition and climate change leadership on the world stage, ahead of the COP26 Glasgow conference in November.
He also conducted a roundtable with Scottish businesses in the retail banking sector at the new Queen Elizabeth hub in Edinburgh, where he thanked them for their role in responding to the pandemic, keeping call centres and banks open for vulnerable customers, and distributing many of the UK Government business support schemes.
The Chancellor went on to see preparations for the International Festival and the Fringe. The UK Government gave £1m of funding to Edinburgh Festivals this year, to help the festival promote itself digitally to a bigger audience.
He visited a number of small businesses including Liggy’s Cake Company, which was supported through the furlough scheme and is now hiring new staff.
He also visited Dynamic Earth, an award-winning visitor centre in Edinburgh dedicated to educating people about the earth and environmental issues, and met with several staff who have returned from furlough and met a group of children taking part in the centre’s outdoor activities.
NUMBERS ON FURLOUGH FALL TO LOWEST LEVEL SINCE START OF PANDEMIC
Almost three million people have moved off furlough since March, according to latest data
More than half a million people left the scheme in the month of June alone, with fewer than two million people now remaining on furlough
Chancellor welcomes new data while meeting furloughed employees on a visit to Scotland
ALMOST three million people have moved off the furlough scheme since March as the economy began to bounce back and businesses reopened, according to new statistics.
Figures published yesterday which cover up until the end of June, show the fewest number of people on furlough since the scheme launched in March 2020, down from a peak of nearly nine million at the height of the pandemic in May last year.
1.9 million people remained on the scheme by the end of June, more than half a million fewer than the 2.4 million at the end of May.
The Business Insights and Conditions survey (BICS) shows numbers may have fallen even further – with estimates that between 1.1 and 1.6 million people are still on furlough.
It comes as the Chancellor visited Scotland where he has hailed the economic strength of the union and where the Government’s Plan for Jobs has supported businesses and families during the pandemic.
Ahead of meeting Scottish businesses and individuals in Edinburgh, Glasgow and Fife, where he talked to employees who have returned from furlough, Rishi Sunak welcomed the statistics.
Chancellor of the Exchequer Rishi Sunak said: “It’s fantastic to see businesses across the UK open, employees returning to work and the numbers of furloughed jobs falling to their lowest levels since the scheme began.
“I’m proud our Plan for Jobs is working and our support will continue in the months ahead.”
The figures also show a striking fall in the number of young people on furlough, who for the first time ever, no longer have the highest take-up of the scheme.
In the last three months, younger people have moved off the scheme twice as fast as all other age brackets, with almost 600,000 under 25s moving off the scheme.
Jobs in sectors including hospitality and retail are now also moving off the scheme the fastest, – with more than a million coming off the scheme in the last three months.
This decline means those in hospitality and retail no longer make up the majority of all those on furlough.
Furlough was extended until the end of September to allow for businesses to adjust beyond the end of the roadmap and to bring people back to work.
Starting on 1st August, the employer contribution to furlough costs will increase to 20% and that contribution level will continue until the scheme ends at the end of September.
The Government’s Plan for Jobs continues and is still in place to provide support, including Kickstart, traineeships and more work coaches to help people find jobs.
The government says this ‘is is the right thing to do’ to reduce long term economic scarring in the labour market and our ongoing Plan for Jobs means that we will continue to support people as the economy recovers.
The Chancellor will visit Scotland today (29 July 2021) to meet people and firms supported by the UK Government’s Plan for Jobs throughout the pandemic.
In advance of the trip, Rishi Sunak hailed the economic strength of the Union and said Scotland’s “innovation and ingenuity” would be key in powering the UK’s future global economy;
He will meet firms in sectors ranging from tech to tourism and see how Scotland is helping drive the UK’s transition to net zero ahead of the COP26 summit in Glasgow later this year.
The Chancellor has hailed the economic strength of the union ahead of a visit to Scotland where he will see first hand how the UK Government’s Plan for Jobs has supported businesses and families during the pandemic.
Rishi Sunak will meet Scottish businesses and individuals in Edinburgh, Glasgow and Fife to discuss how they are recovering from the crisis and find out more about the ways Scottish firms are creating jobs and playing a key role in the UK’s green recovery.
Ahead of the visit, he hailed the economic strength of the union and said Scotland’s “innovation and ingenuity” would be key in powering the UK’s future global economy.
Chancellor of the Exchequer, Rishi Sunak said: “We’ve come through this pandemic as one United Kingdom – with our Plan for Jobs supporting one in three jobs and tens of thousands of businesses across Scotland.
“Thanks to the strength of our Union we’ve deployed the fastest vaccination rollout in Europe and our economy is rebounding faster than expected.
“It’s vital this continues, and Scotland’s innovation and ingenuity will be key in creating jobs, powering our growth and driving a green recovery.”
Since the start of the pandemic the UK government has delivered one of the world’s most generous packages to support, create and protect jobs across the UK.
In Scotland one in three jobs have been supported through the pandemic, over 900,000 people in Scotland were furloughed, more than 90,000 businesses have received loans and £1,535 billion has been paid in self-employment support.
People in Scotland are benefitting from the UK Government’s Plan for Jobs – the Kickstart scheme is already helping thousands of 16-24-year-olds into work, Job Entry Targeted Support (JETS) Scotland is providing up to six months of targeted support and 13,500 new Work Coaches have been recruited across Great Britain to give tailored support to people out of work.
On today’s visit, the Chancellor will travel to a number of businesses – both small and large – to meet business owners and furloughed employees who have returned to work after their jobs were protected through the UK-wide scheme.
With just under 100 days until the COP26 summit in Glasgow, he will also see how Scotland is harnessing the power of offshore wind, a sector which supports 2,800 jobs in Scotland and is key in helping the whole of the UK reach our climate goals.
The Chancellor will also meet representatives of Scotland’s financial services sector to thank them for keeping call centres and branches open over the pandemic as well as distributing billions of pounds through UK government loan schemes.
He will discuss his vision for the future of financial services – a sector which accounts for 153,000 jobs in Scotland (financial and professional related services).
He will also see how Scotland’s culture sector is preparing for the summer ahead, as it looks forward to welcoming back locals and tourists who wish to revel in Scotland’s rich cultural heritage.
Get involved in Scotland’s new recruitment campaign to support the tourism industry
In partnership with Scottish Government, the Scottish Tourism Alliance has launched a new campaign to address the current staffing crisis within Scotland’s tourism industry, a crisis caused by the impact of Covid-19 and the workforce shortage resulting from Brexit.
The aim of the campaign is to support your business in recruiting talent for the diverse range of positions which are currently available and to inspire young people to play an important role in the recovery of Scotland’s valuable tourism and hospitality industry, by choosing a job within the sector.
The initiative, funded by the Scottish Government and supported by a range of organisations and charities, will run from July 5 to August 15 and is supported by the Scottish Tourism Alliance, Skills Development Scotland, Springboard, HIT Scotland, VisitScotland, Scottish Enterprise, Highlands and Islands Enterprise and South of Scotland Enterprise.
How can you help?
As part of the campaign all tourism businesses in Scotland are asked to list your vacancies, part-time and permanent on all levels (FREE) on the Careerscope jobs portal. The jobs will then be available to all Careerscope users and those with profiles will be matched to suitable advertisements.
How can you get involved?
As well as making sure your current vacancies are listed on the Careerscope portal, all tourism and hospitality businesses are asked to get involved by sharing the campaign on your own social channels with the hashtag #DoWhatYouLove.
To support businesses there are a range of resources available for use on your digital channels and you can download the Recruitment Campaign Toolkit here.
Confidence levels are up, Millennials make their mark and interest in ethical investing hits new highs
Confidence levels amongst UK investors have risen 20 points (62 – 82) in the last 12 months according to new research amongst 1100 UK investors (£10k+).
The Investor Index, now in its second year, is conducted jointly by London-based communications agency AML Group and research agency The Nursery Research and Planning and was launched in April 2020 to assess the immediate impact of Covid 19 on investors and the UK investment marketplace.
The first report of its kind to provide an objective overview of the industry based on hard data,the study was welcomed as a barometer of post-Covid investor behaviours.
“57% of UK investors have changed their investment strategy since the pandemic started”
One year on, and still in the grip of the pandemic, the 2021 study has revealed some significant changes and ‘recalibrations’ amongst investors.
Confidence returns – but not to pre-pandemic levels
Over the past 12 months, confidence levels have risen most amongst older investors (55+) up 30 points (54 – 84), investors that are retired up 27 points (57 – 84), those that use financial advisers up 31 points (65 – 96) and investors with a portfolio of £200k+ – up 38 points (55 – 93).
The study has also revealed a disparity in gender confidence levels – with men indicating a 25 point rise over the last 12 months (61- 86) compared to a rise in confidence levels of just 10 points among female investors (65 – 75).
However whilst the results are cause for some degree of optimism – investor confidence levels are still 18 points down from pre-Covid levels.
Gen Z/Millennials Vs Baby Boomers – the emerging generational divide
10% of UK investors have started investing since the pandemic began – and of those new investors three-quarters (74%) are under 35s.
It’s a changing landscape with the younger investor bringing different attitudes and priorities to the investor table.
89% of under 35s have changed their investment strategy over the last year vs. 31% of 55+ investors. Younger investors are also increasingly looking to ESG products – with 27% including responsible investments in their portfolio compared to only 4% of investors aged 55 and older. Younger investors are also more focused on the long game – with 30% looking to longer term investments compared to 8% of investors 55+.
When it comes to investment decisions, younger investors are increasingly turning to family (40%), banks (30%) and friends (27%) for advice.
It’s a gift – investors demonstrate a change of attitude
57% of UK investors have changed their investment strategy since the pandemic started – with a focus on products offering ‘long term growth’ (46%) over ‘short term growth’ (30%).
Investors are increasingly concerned about their children’s financial security. 70% of investors are aware of the £3,000 wealth transfer allowance with 38% having given £500 or more over the last 12 months – with children the biggest recipients (72%). Indeed the average amount gifted in 2020 was £8087 compared to £5421 pre pandemic (2019) – a 49% increase and a clear indicator of the want for investors to safeguard futures for loved ones.
How invested is the UK investor in Responsible Investing?
Investors feel that ethical/socially responsible financial products are more important now than at the same time last year – up 9 percentage points (23% – 32%) with three in ten of those surveyed stating that they believe that these products will be more important in the future – up six percentage points (24% – 30%).
However despite investors acknowledging the importance of ESG/RI there is a continuing perception, despite contrary evidence, that it carries a performance penalty with investors ‘prioritising financial security over wider ethical considerations’ – up five percentage points (23% – 28%).
Younger investors look to DIY platforms
Since the start of the pandemic in March 2020, four in ten investors under 35 (39%) have invested more with DIY platforms – compared to just 14% of 55+. And while the younger investor has indicated a ‘happy to do it myself’ attitude regarding financial planning and investments they are less confident when it comes to their feelings about the industry. Just under one-third of under 35s (29%) are confident markets will bounce back compared to more than half (52%) of investors aged 55+.
Perhaps predictably, younger investors are more tapped into trends and news stories connected to investing.
39% of under 35s cited an awareness of the growth in DIY platforms with 44% familiar with the story around Reddit users driving up the share price of Game Stop and 31% aware of the rise in silver prices. Investors aged 55+ recorded significantly lower awareness across all trends.
5. Percentage of investors who have increased amounts invested since Covid-19 – 36%
6. Changed Investment strategy since the start of the pandemic – 57%
7. Ethical products considered more important now – 32% (up 9 percentage points)
8. Percentage of all new investors (in the last 12 months) that are women – 63%
9. Under 35s who have increased DIY investments since Covid – 39%
METHODOLOGY: 1,100 nationally representative interviews were conducted online in April 2021 from an adult sample with £10,000+ of investments. Respondents were recruited from Dynata’s online access panels. 7 in-depth interviews were conducted with a mix of IFAs and Wealth Managers – also in April 2021.
