Bristol and beyond: Which UK cities have the highest payday loan demand

As the UK braces for one of the most anticipated budgets in recent memory, many will be looking towards their finances and thinking of ways to prepare and whilst many have the cashflow and savings to cope with financial pinch points, data from our study shows that many in the UK are struggling with financial management with an average number of monthly searches for the term ‘payday loans’ at a staggering 77,400 searches per month. 

Our report details the locations where members of the public are feeling the pinch the most by analysing searches on Google for ‘payday loans’ and comparing that data to median income and population data from the Office of National Statistics, spotlighting cities in the South West and wider country that experience the highest payday loan demand. 

Bristol has the highest number of payday loan searches in the South West

Looking specifically at the South West, Bristol ranks high in terms of total payday loan searches and equally high when looking at payday loan interest as a percentage of their population with 13 searches per 10,000 residents a month and a median income of £637 per week according to the ONS. 

Close neighbours, Bath, have a considerably lower number of payday loan searches of 5 per 10,000 employees and a much higher median income of £790 per week. Gloucester and Cheltenham are two areas with higher median incomes but a lower number of searches for payday loans. 

Swindon, Truro and Plymouth show the middle-income strain

Swindon records 260 monthly searches for payday loans and 11 searches per 10,000 people, sitting mid-range for both income and borrowing interest This suggests that household budgeting pressures may not stem solely from income, but also from factors like inflation and consumer debt. 

Similar trends could be drawn from Truro and Plymouth, two areas in the South West with higher median incomes, but equally two areas with some of the highest interest in payday loans. We can see that many employees in more urban areas are struggling with debt management, even those with higher median income; but how does this compare to the rest of the UK? 

Which UK cities have the most payday loan searches? 

The trend reveals higher levels of payday loan searches per 10,000 residents amongst the larger cities in the UK, and with national level data we have also compared to the total estimated average savings sum of each city from Shepherds Friendly 2023 survey to connect the dots between financial safety nets and the need for short-term finance. 

London tops the list showing higher income doesn’t equal financial security

Inner London dominates payday loan searches with nearly 10,000 monthly queries, almost four times higher than the next city. Despite having the highest median income (£958 per week) of all cities analysed, the capital’s high cost of living appears to drive many employees to seek short-term credit. This suggests that even in areas of higher earnings and better savings, disposable income may be squeezed by rent, transport, and energy costs for all but the highest earners. 

Birmingham and Glasgow reveal urban financial pressure

Both Birmingham and Glasgow show 21 searches per 10,000 people, among the highest in the country. Yet Glasgow’s average savings balance (£6,419) is one of the lowest of any major city, suggesting a thinner financial safety net.

In Birmingham, although savings are higher (£23,790), the median income is relatively modest (£661 per week), pointing to a population reliant on savings to bridge shortfalls. 

Edinburgh interest ranks amongst highest in the UK

Edinburgh’s 17 searches per 10,000 show notable demand for payday loans, despite a comparatively strong median income (£778). However, employees here hold just £9,504 in savings, implying limited liquidity even among higher earners

How Money@Work can benefit employers and employees 

Whilst payday loans can provide short-term relief for sudden unexpected bills and financial difficulty, getting caught in a cycle of constant loaning and repayment can lead to debt spirals that increase financial stress and lead to serious negative mental health outcomes. 

Research from Zellis reveals that 77% of workers have reported financial stress hitting their performance at work, so better financial well-being is in the interest of both individuals, employers and the economy as a whole. 

“With living costs so high, especially in Bristol but in many other areas too, employees are turning to pay day loans because they need quick cash and feel out of options. Accessing a local credit union through the employer for a loan repaid through salary deduction, is a far safer and affordable alternative. It protects employees from spiralling fees, supports financial wellbeing and creates a more focused and resilient workforce.” Henry Logan, Head of Finance.

Money@Work from Great Western Credit Union (GWCU) is a payroll savings and loans scheme that helps employees build financial resilience and reduce money-related stress. Available to businesses across the South and West of England, all at no cost, it enables employees to save or borrow directly through their salary, making money management simple and consistent.

Money@Work is a free-to-implement financial wellbeing benefit that offers fair, affordable finance while supporting employees’ long-term stability. When you compare the interest rate on loans starting at 7.9% with the 1,250% often charged by payday loan companies, the advantages of affordable credit and accessible savings become clear.

It also works alongside existing employer benefits, helping to provide a broader choice of options for employees looking to improve their financial resilience.

Get in touch if you would like to learn more.

Research methodology 

To provide the analysis above we looked at the average number of monthly searches as a snapshot within Google search engine tracking software provider SEMRush compared to the estimated population of each city and town shown according to the 2021 Census from the ONS (the latest accurate reading on city level data). 

We then compared this to the average median income for each city (according to Nomisweb from the ONS) to show relationships between the demand for emergency finance, median income and where available for the national dataset, average amount held in savings according to a survey from Shepherds Friendly. All of the data including screenshots of relevant gated wall content from Semrush can be sent upon request.