The UK's investment gap grew by more than 30% between 2022 and 2024, with around 15m adults now holding more than £610bn of “possible investments” in cash, according to analysis of official data.

The figures calculated by Barclays are based on savers who already hold more than six months’ income in cash savings.

The bank said cash savings have grown simply through the accrual of interest. It reckons that, in the absence of any action by the 13m people with savings in cash identified in 2022, their savings would have increased by approximately £35bn due to interest rate rises alone.

That was because of the rise in interest rates over that period. In May 2022, the Bank of England set interest rates at 1%. By May 2024, rates had risen to 5.25%.

Barclays said the rise in interest rates accounts for 23% of the increase observed between 2022 and 2024.

The rest was because of a behavioural shift, the bank said. It said higher interest rates made savings accounts more attractive, especially in the context of rising geopolitical unrest such as the wars in Ukraine and the Middle East, which have made certain investments seem riskier. 

UK investment gap – difference between 2022 and 2024

Source: Barclays Bank 

Sasha Wiggins, CEO of Barclays Private Bank and Wealth Management, said: "Investing can deliver better financial outcomes for individuals and supports economic growth. However, the UK’s investment gap has grown by more than 30% in just two years, emphasising that significant efforts are still required to transform the UK into a nation of investors.”

She pointed out that in recent months, there has been collaborative action and positive steps from regulators and policymakers. She said the Advice Guidance Boundary Review and the retail investment reforms announced by the Chancellor in her Mansion House speech present a unique opportunity to reshape the UK’s investment culture.

Ms Wiggins added: “The task now is to turn these reforms into lasting behavioural change, helping savers feel confident, supported and better able to understand risk. That focus on building confidence will be central to industry's work as part of the UK’s new retail investment campaign."

• The financial calculations in the Barclays UK investment gap reports are based on the FCA’s Financial Lives Survey and the most up-to-date population data published by official bodies at the time of publication.