According to Barclays’ latest UK Investment Gap report* (September 2025), people in Britain are sitting on more than £600 billion in cash that could be invested.
That’s money beyond six months’ income. Cash that isn’t being used to grow wealth or keep pace with inflation. Instead, it’s sitting in bank accounts, quietly losing value in real terms.
In a time of higher prices, stubborn inflation, and rising living costs, every pound matters. Yet millions of us are allowing our money to stand still when it could be working harder.
Why this matters
Many people see cash as comfort, it feels safe, accessible, and familiar. But the truth is that inflation steadily erodes the spending power of money left in savings accounts.
Even when interest rates appear attractive, they often trail behind inflation. That means the “safe” option can actually cost you over time.
For those holding significant amounts of cash, this can make a real difference to long-term financial wellbeing. A sum that could have grown through sensible investment may instead be losing value each year.
The illusion of safety
Leaving large sums in the bank might seem risk-free, but there are limits to that safety.
Under the Financial Services Compensation Scheme (FSCS), only £85,000 per person, per bank or building society is protected. Anything above that amount held with the same provider may not be covered if the institution were to fail.
So, while cash feels reassuring, it’s not always as secure – or as effective – as people assume.
The opportunity cost
Barclays’ report highlights a national challenge: too much wealth is standing still.
That £600 billion of idle cash could be helping people reach their financial goals. Building retirement income, supporting family plans, or simply keeping up with the rising cost of living.
When left untouched, that potential is lost. Over time, the difference between cash returns and even modest investment growth can add up to tens of thousands of pounds.
The point isn’t to take unnecessary risk, it’s to recognise that doing nothing carries its own risk too.
How to make your money work harder
You don’t have to be an experienced investor to start making your money more productive. It begins with a few simple steps:
- Keep an emergency fund – aim for three to six months of essential spending in accessible savings.
- Review what’s left – any additional cash could be working harder for you.
- Check your protection – make sure no more than £85,000 is held with a single bank.
- Think longer term – explore investment options that suit your goals and attitude to risk.
- Get advice – professional guidance can help you find the right balance between growth and security.
At Citrus Financial, we help you put a plan in place so your money supports your ambitions, not just your peace of mind.
Staying one step ahead
Doing nothing can feel safe, but it’s not a strategy. With inflation still above target and living costs high, leaving large sums sitting idle in cash means missing out on opportunities for growth.
If you’d like to make your money work harder – safely, sensibly, and with expert support – now is the time to start.
Let’s make your money work harder.
Call us for a free initial consultation and get some clarity, confidence, and control over your finances.
Source:* https://home.barclays/insights/2025/09/The-UK-Investment-Gap/
The value of pensions and investments can fall as well as rise and you can get back less than you invested.
Approver Quilter Financial Services Limited. 24/10/2025
About the author: David Braithwaite is a highly regarded financial expert, known to many as BBC Radio Kent’s “Money Mentor,” where he shares practical advice and insights on managing money effectively. As the founder of Citrus Financial, David has built a reputation for providing tailored financial guidance to individuals and families, helping them achieve their financial goals with confidence.
