Tag: Smart Data Foundry

Scottish salaries on the rise, says Sage workforce report

Employee wages in Scotland’s small businesses have risen by 5.7% since November 2024, according to a new report published by Sage.

This was the second largest year-on-year increase across the UK, with Wales also at 5.7% and the West Midlands at 5.8%.

The findings come from the second edition of the Sage UK Workforce Tracker, developed in partnership with Edinburgh’s Smart Data Foundry and The Centre for Economics and Business Research (Cebr). The tracker draws on monthly data from around 200,000 small businesses and millions of employees nationwide.

Across the UK, median gross earnings are up 5.3% year-on-year to £2,170, with take home (net) pay of £1,767 up 3.1% year-on-year.

Highest salary rises were in information and communication at 6.4%, followed by other services, wholesale and retail trade, and construction, with the lowest rises in the arts and entertainment industry at just 1.4%.

Headcount growth in general has slowed however, with changes ranging from -1% to 0.1%, suggesting that businesses are not investing in new people.

Nationally, the total headcount decreased 0.4% from November 2024 but regionally there was more variability. South West, London, and the North East are among the lowest in terms of headcount growth while East Midlands, East of England, and South East are among the highest.

Liam Daly, Senior Economist at Cebr, as quoted in the tracker said: “The Sage UK Workforce Tracker reveals that the headcount among the sample of small businesses contracted in November, compared to the same month a year ago.

“Meanwhile, median earnings growth decelerated year-on-year, reflecting the shifting demand–supply dynamics in the labour market. Looking ahead, the near-term economic outlook remains modest, reflecting weak consumer spending growth and still fragile business confidence.

“On the upside, easing inflationary pressures should set the stage for further interest rate cuts, helping to reduce borrowing costs. Meanwhile, a sustained deceleration in earnings growth will be welcomed by employers as labour costs remain stubbornly high. Measures announced in the Autumn Budget are likely to do little to materially improve the economy’s tepid growth and productivity performance nor spur greater hiring appetite among businesses.”

Year-on-year changes in headcount have varied widely by industry. Public administration and defence headcount had the highest growth of 3.0%while accommodation and food services experienced the largest drop of 3.0%.

Pairing this new report together with the Sage Small Business Tracker (SMB Tracker) shows that this reduction in headcount for accommodation and food services is matched by the largest annual decrease in revenue, a 4.2% decrease. This combination of data ties workforce changes to broader economic conditions affecting revenues. 

Dougie Robb, CEO of Smart Data Foundry, said: “It’s great to be supplying data for The Workforce Tracker which gives fresh insight into regional and industry activity for both earning and headcount.

“The statistics can be used alongside the Small Business Tracker to help reveal hurdles and opportunities to businesses, guiding decision-makers toward an impactful, sustainable future.”

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New economic wellbeing monitor reveals stark regional divide across Scotland, England and Wales

Edinburgh-based Smart Data Foundry (SDF) has released new data showing that people living in the North East of England have the lowest financial resilience in Great Britain, while those in the Highlands and Islands have the highest.

Figures from SDF’s Economic Wellbeing Explorer, a new, map-based research tool launched today in London, reveal that 43%* of account holders in North East England had less than £100 in their bank accounts on two or more occasions in a single month.

This means that many households in places like Newcastle, Sunderland and Middlesbrough are struggling to cope with unexpected expenses, such as a broken appliance, a car or home repair, or a sudden loss of income.

South East Wales is close behind at 41%, followed by Yorkshire & The Humber at 40%. By contrast, in the Highlands and Islands of Scotland, only 29% of account holders regularly fall below the £100 threshold.

Nationally, more than half of people aged 18 to 39 were found to have low financial resilience (56% in Scotland and England, and 59% in Wales), compared to just 10% of those aged 70 and over in all three nations.

Dougie Robb, CEO of Smart Data Foundry, said: “This is the first time we’ve been able to track, on a monthly basis, where the cost-of-living crisis is hitting hardest across Great Britain.

“Almost half of people in the North East have very little financial resilience, which is deeply concerning and reflects the mounting pressure of long-term price inflation, despite wages rising.

“However, the data also shows there has been a significant decrease in people living beyond their means (spending 120% of income) between September 2024 and September 2025 across GB. In England it has dropped from 20% to 13%, in Wales from 19% to 12% and in Scotland 19% to 12%.

“We believe these two trends show that whilst rising wages have helped to keep people afloat, rising costs are eating into their ability to build a financial buffer.”

The data, which is updated monthly, is the first to be released by the new GB-wide Economic Wellbeing Explorer (EWE), developed by Smart Data Foundry. It was unveiled to parliamentarians, researchers and the public during Evidence Week in Westminster.

It uses near real-time data from 5 million bank accounts and tracks economic resilience and wellbeing at national, regional, and local levels, and between age groups and income ranges.

Robb added: “We launched the Economic Wellbeing Explorer in Scotland earlier this year and the response was so positive from local authorities and researchers that we have extended its reach further to include England and Wales too.

“This map-based platform gives policymakers near real-time insight into the areas and age groups who are struggling most, so that changes of policy and interventions can be made quickly when necessary.

“In the past, many policy and funding decisions were made using lagging statistics from surveys or censuses. Now we can use real-world data to show how economic trends are impacting people’s lives from month to month and from area to area. From that information, researchers and policy makers can build an accurate picture of the impact of financial shocks like the increase in the energy price cap or inflation spikes, and be more responsive in their decision making.”

The platform is now open for registration, offering trusted insights to help public institutions, NGOs, and researchers make evidence-based decisions on poverty and inequality.

Topline insights are available for free at a national and regional level, with deeper insights at a local level (Local Authority and neighbourhood level) available via subscription.

The launch follows a successful pilot with East Renfrewshire Council, where financial data was integrated with Council data such as requests for financial support, and other public sector data such as DWP data on children living in poverty, to better understand the impact of the cost-of-living crisis. The Council was able to target interventions more effectively, uncovering hidden pockets of deprivation that were previously missed. This allowed the Council to target support in these emerging areas, intervening before financial struggles escalated further.

A spokesman for the Council said: “The Economic Wellbeing Explorer has influenced decision-making around how and where we deliver supports, such as the Thrive Under 5 project.

“As the dashboard highlighted widespread need, we took the decision to open this project to families from any part of the authority and not just limit it to the most deprived areas. This has meant families who might not previously have been known to us have been supported by the project.

“We will continue to use the Economic Wellbeing Explorer to monitor changes by area, age, income level or over time. This will allow us to best understand need and make informed decisions based on the needs of our residents.”

The Economic Wellbeing Explorer is powered by data from NatWest Group, alongside contextual open data sources such as housing, education and demographic data. All data supplied to Smart Data Foundry is deidentified at source and is held and managed within a strict information governance framework to ensure security, privacy, and ethical standards.

Find out more about the Economic Wellbeing Explorer here.

£3M FUNDING BOOST FOR EDINBURGH’S SMART DATA FOUNDRY

Smart Data Foundry (SDF) has been awarded £3 million funding to operate a new Financial Data Service, enabling more researchers to study the financial health of millions of households across the UK, by providing secure access to financial behaviours, economic resilience, and regional economic activity.

The funding is made by Smart Data Research UK, which is part of UK Research and Innovation (UKRI).

The new service, which will operate from SDF’s base at Edinburgh Futures Institute, will be part of a network of five other data services across the country.

Together, they will put the UK at the forefront of smart data research and innovation. Providing safe and efficient ways for researchers to access and use the smart data generated through everyday interactions with the digital world, including via mobile apps, navigation systems, social media and shopping.

Led by SDF’s Dougie Robb and Professor Chris Dibben from the University of Edinburgh, the new Financial Data Service will provide unprecedented insights into the economic health of the UK through secure access to de-identified banking and finance data from millions of households and businesses.

Since its establishment in 2022, SDF has earned national recognition for its work using anonymised financial data for public good, including research in partnership with NatWest Group into how Covid-19 affected how people earned, spent and saved during and post pandemic and its work with Sage and CEBR on their quarterly SME tracker.

Dougie Robb, SDF’s Interim CEO, said: “We look forward to joining five of the most forward-thinking data service organisations in the UK in this groundbreaking network. It will foster data sharing partnerships between academia, public institutions and private enterprise leading to public good outcomes which will improve the lives of people across the UK.

“In partnership with the University of Edinburgh (UoE) we’ve made great progress in holding and making available for public benefit research financial data resources. We have forged fruitful data partnerships with NatWest Group, Virgin Money, SAGE, and Equifax,  and built a team of transdisciplinary experts with expertise across finance, banking, digital technology, product, data science, and information governance.”

Professor Chris Dibben added: “Understanding the financial situation of households across the UK is a vitally important for social and economic research. However this key aspect of economic life is often poorly measured in our research datasets or even absent.

“This investment by Smart Data Research UK in a Financial Data Service will allow us to change this situation, enabling more public benefit social and economic policy research. I am really excited to be working with Smart Data Foundry and SDR UK to deliver this significant new resource over the next three years.”

By partnering with financial institutions and leading research institutes, the new Financial Data Service will deliver insights into productivity, prosperity and health and wellbeing, providing access to detailed evidence about financial behaviours, economic resilience, and regional economic activity.

This data will enable researchers to tackle urgent policy challenges including the cost-of-living crisis, financial inclusion, the changing nature of employment, and productivity in different economic sectors and geographic places.

The service will enable a transformation in the UK’s understanding of how economic shocks and policy interventions affect different communities, helping policymakers design more targeted and effective responses to economic challenges.

Magdalena Getler, Head of Academic Engagement at Smart Data Foundry, said: “With the new Data (Use and Access) Bill currently going through Parliament, we are at the beginning of a new age for data.

“If successful, the new legislation will empower safe data use, access, and sharing for the good of society like tackling challenges such as the impacts of poverty and economic inactivity.”

Also awarded funding in this latest tranche was Smart Energy Data Service, part of the Energy Systems Catapult. All six will work collaboratively as part of the Smart Data Research UK programme.

These two new data services join four others previously announced:

·       Imagery Data Service (Imago)

·       Smart Data Donation Service

·       Geographic Data Service

·       Healthy and Sustainable Places Data Service

A strategic hub based within the Economic and Social Research Council (ESRC) will provide leadership and coordination. It will also offer common services and ethical guidance.

Joe Cuddeford, Director of Smart Data Research UK, said: “Our six interconnected services will enable researchers to access unprecedented insights across finance, energy, health, geography, and beyond – empowering innovative solutions to complex societal challenges facing the UK today.”

Stian Westlake, Executive Chair of the Economic and Social Research Council, added: “This investment in a new network of smart data services helps put the UK at the forefront of data-driven innovation.

“Data infrastructure is as critical to our shared prosperity as transport, water or power networks. When we invest in data infrastructure we are investing in economic growth, improved public services, and a more sustainable future.”

New Edinburgh Futures Institute welcomes first commercial tenant

The University of Edinburgh has welcomed its first commercial tenant to the new Edinburgh Futures Institute in the capital’s historic Old Royal Infirmary in Lauriston Place.

Smart Data Foundry has moved from the nearby Bayes Centre to a state-of-the-art workspace in one of the converted Nightingale wards in the A-listed building, which dates back to 1879.

SDF’s move follows a period of sustained growth for the organisation which was founded in 2022 to unlock the power of financial data to tackle the major issues facing society. Over the past two years it has seen its workforce grow and mature and forged partnerships with clients like Sage, NatWest Group and Financial Conduct Authority (FCA).

The data pioneer has moved into a purpose-built ward on the 2nd floor of the historic building which housed the city’s main hospital until 2003. The Institute officially opened to the public on 3rd of June, following a multi-million-pound, seven-year refurbishment programme.  

Professor Kev Dhaliwal, Interim Director of Edinburgh Futures Institute said: “Edinburgh Futures Institute is delighted to welcome Smart Data Foundry. As one of the region’s Data Driven Innovation Hubs, we bring together staff, students and partners into an inspiring, collaborative and entrepreneurial environment.

“Co-location with our financial and public services sector hubs, alongside numerous industrial partners, researchers, and talented students, will accelerate data innovation and insights to help solve national and global challenges. We share the ambition to deliver positive social impact and build a better world using the power of data.”

The building includes teaching facilities, rooms for co-working with industry partners, business incubation areas, labs for innovation and prototyping, a public square, café, and exhibition and performance spaces.

Dame Julia Unwin, Chair of Smart Data Foundry, said: “Edinburgh Futures Institute has an unrivalled range of facilities in the heart of Edinburgh, and this strategic relocation underscores our commitment to fostering greater collaboration, innovation and productivity in our mission to unlock the power of data for good.

“It’s our aim to cultivate a dynamic ecosystem where data scientists, researchers, and industry partners can collaborate seamlessly to unlock new insights and drive forward our purpose of creating positive impact across society, the economy and the environment. Our new home at the Edinburgh Futures Institute is the perfect base for this ecosystem to flourish.”

Dougie Robb, Chief Financial Officer at Smart Data Foundry, added: “The combination of modern design, restored historic architecture and beautiful grounds at Edinburgh Futures Institute will help us to showcase our services to clients and attract the best talent to the Smart Data Foundry team.

“It’s not just a new office; it’s a place where ideas will flourish and groundbreaking work will be done.”

Smart Data Foundry currently delivers pioneering projects including a Cost-of-Living Dashboard for East Renfrewshire Council. Utilising near real-time de-identified data from NatWest Group, this dashboard integrates financial well-being indicators with contextual information, helping the council to understand better the challenges citizens face and therefore how this might impact on future policy interventions.

Other projects include the launch of the groundbreaking Income Volatility Dashboard with Joseph Rowntree Foundation. This innovative platform provides a comprehensive and unique view of income volatility and insecurity on consumers throughout the United Kingdom as a research and policy platform.

Over 50s to be hardest hit by the cost-of-living crisis and the financial impact of the Covid pandemic

A report by leading UK data scientists has revealed that the over-50s are being hit hardest by the current financial crisis and could face a lifetime of financial insecurity.  

That’s according to new research from the University of Edinburgh’s Smart Data Foundry, supported and funded by abrdn Financial Fairness Trust. 

According to the report, economic inactivity rates have risen a third amongst the over 50s since 2019, and people aged 50-54 face double the financial vulnerability risk than those aged 70-74.  

Findings reveal that people in their 50s and 60s are facing the ‘perfect storm’ of circumstances including redundancy, ill health or caring commitments combined with a lack of savings and pension provisions.   

To offset this loss of income, many people are being forced to withdraw lump sums from their pension pots to deal with pre-retirement income shocks.  

And with the majority of pension pots worth under £30,000, this is causing knock-on issues with income tax and entitlement to benefits.  Worryingly, the research also identified that those people who do cash in their pension pots early are 1.75 times more at risk of financial vulnerability in the future.   

To tackle this, Smart Data Foundry is calling on the Department of Work and Pensions to act now to reduce the risk of pension assets being spent before retirement. It recommends an increase to the current capital limit of £16,000 for means tested benefits and, for those on Universal Credit, the reform of the Support for Mortgage Relief (SMI) loan facility by removing the zero earnings rule. 

Chair of Smart Data Foundry, Dame Julia Unwin, explains: “We are seeing a pattern of people in their early to mid-fifties going from being in positions of comfortable, middle-aged breadwinners eyeing their future retirement over the horizon, to a generation suddenly finding themselves facing long-term financial hardship.  

“A combination of being unable to secure viable work, confused messaging over pensions, little by way of state aid, and the savage cost-of-living rises resulting in many making decisions that could have long-term negative consequences.  

“With this report and our key recommendations, we are calling for UK Government to intervene to protect and support the most vulnerable before it is too late. If they don’t act now, we will undoubtedly see even bigger problems in the years ahead. Data doesn’t lie; the evidence is there – older workers are at very real risk of financial vulnerability, but it is not yet too late to act.” 

The research study also uncovered a widespread lack of understanding about the benefits system, confusion about claims processes, and hardship arising from payment frequency.  To improve the transition to retirement, the report calls for increased government investment in the Pension Wise guidance service and expansion to include the state pension. 

According to the findings, older workers are encountering barriers to returning to work, including lack of digital skills, unavailability of flexible working, lack of specific government initiatives, ageism, psychological barriers, and retraining needs.  

The longer the unemployed worker remains out of work, the harder it is for them to find a suitable position and the greater their risk of falling into forced retirement.

The report calls for a government-funded employment programme targeted at those who need support in changing careers, starting from the first day of unemployment for the over 55s. 

Lead researcher Dr Lynne Robertson-Rose from the University of Edinburgh added: “We set out to understand the financial vulnerability amongst those in their 50s and 60s and have been surprised by the bleak picture that the data paints.

“Any disruption in earning capability in the decade before the state pension is forcing older workers to draw down on savings earmarked for retirement with little ability to top up the pot, leading to the risk of financial vulnerability becoming lifelong. 

“We have access to rich data supplied to Smart Data Foundry by UK financial institutions and these insights have furnished us with the information that enabled us to make policy recommendations.  It also flags  opportunities for the financial services and fintech sector to innovate in order to help individuals better manage their finances.” 

Karen Barker, Head of Policy and Research at abrdn Financial Fairness Trust, added: “Making decisions about your pension is tricky to navigate, and for those on lower incomes, advice is too expensive.

“The Government needs to improve access to advice on pensions planning for those on lower incomes to avoid a living standards catastrophe.”  

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