Approximately 7.34 millionadults or 13% of the adult population in the UK are suffering from significant levels of financial services as a result of financial exclusion or severe credit distress, according to new analysis from data and analytics provider, LexisNexis® Risk Solutions. This means they will more likely struggle to access affordable credit and suffer financial hardship.
The figures include 3.14 million or 6% of UK adults who have at least one negative financial event – such as a County Court Judgement (CCJ) – linked to their credit profile in the past six years. A further 2.88 million or 5% are classified as potentially financially excluded, while 2.43 million people or 4% are unable to secure a short-term loan from any provider, despite making multiple applications.
Previous analysis conducted in 2021 by LexisNexis Risk Solutions found similar levels of financial stress amongst the UK population with around 7 million adults classed as potentially financially excluded and 3.5 million with at least one negative financial event.
The latest data shows that 2.8 million CCJs – a court order issued to individuals in England, Wales and Northern Ireland to settle unpaid debts – have been handed out since 2019, accounting for 86% of the negative financial events currently affecting credit scores. The remainder (437,000) relate to bankruptcies and insolvencies. Levels of CCJs have increased by 7% in the past year, rising to 751,414 judgements. The average value of each judgment rose 18% over the same timeframe to £2,088.
Analysis also shows that the 2.4 million people who are unable to secure a short-term loan made an average of 36 applications each. The data indicates loan denials are on the increase too, with 1 in 5 applicants failing to secure any loan offer two years ago, compared to almost 1 in 3 applicants in 2025. Loan application volumes have fallen over the same period by around 51% between 2023 and 2024.
Of the UK’s potentially financially excluded population, approximately 1.1 million or 2% of UK adults have no evidence of an active current account or bank card. More than 567,000 people or 1% of the population are known as ‘thin file’, meaning their data footprint is nearly non-existent.
Neil Allen, UK head of credit risk strategy at LexisNexis Risk Solutions, commented, “Quantifying the scale of financial exclusion and credit distress in the UK plays an essential role in tackling it. Financial stress can lead people into a debt spiral, as they are forced to rely on expensive borrowing to service existing debts or manage their day-to-day expenses. Those who are refused credit are effectively excluded from legal lending services and often turn to illegal routes, as millions have done in the past year, according to some debt charities.”
Discover the latest trends and insights—explore the Business Insights Journal for up-to-date strategies and industry breakthroughs!
