Theoretically, one might hypothesise that people on lower incomes are - on average - LESS good at budgeting on the basis that, on average, they are likely to have worse maths skills and impulse control
This is one of the bugbears of mine. As someone who has a degree in Mathematics I can assure you that 99.9% of the mathematics I ever learnt won't help in budgeting. I think you mean 'arithmetical skills' and I would argue (without any evidence) that it may well depend on what job people do. If they work in retail, for instance, they will probably have to give change because miserable s**s like me refuse to use cards unless there is an incentive to do so, but also because they will see the embarrassment as a customer, someone they may see at the school gate, asks for an item or items to be put back because they can't pay the total bill, or have first one, then another card declined, while people behind are grumbling. They want to avoid the same. I sympathise; when I go shopping I keep a mental note of the approximate total so I have the right note (or notes) at the till. Just recently the bill has regularly been more than my estimate and not by pence; when I've checked - no mistake. I was one, or perhaps two, price rises out of date and hadn't really noticed. I'm OK at the moment (not directly affected when the price of fuel went up) but anyone getting by a year ago will be struggling now.
Additionally, as I tried to point out in a previous post, it is the one off event - the car breaks down, someone has their hours of work cut, the rent/ mortgage goes up - a lot, or (as I gather from Radio 4's You and Yours is happening increasingly) they are subjected to a 'no-fault' eviction (sometimes because the landlord/ lady needs the cash), that throws even the best budgetter off their stride. There must be a very good reason why, while I was typing this, I received an(other) e-mail suggesting I took out a credit card, just under 30% interest. I bet those struggling get an offer much higher than that. We have had years of stable interest rates, not any longer, and anyone about to lose the roof over their head will be looking to secure a new home first, then seeing how they can make ends meet.
High rental prices throughout the whole country and decades of poor wage growth making it practically impossible to scrape together a deposit. It's not nice to say but my only hope of getting enough is through a family member dying and leaving me a chunk. Even then most of that will go towards paying off a few grand's worth of built up debt.
I'm not like we make bad wages (we have a combined income of 45ish K) but most of that goes to just living.
I couldn't afford to pay more into a pension and continue to live in the house we do (small 2 bed terrace in a semi-reasonable area). Every employer I've ever had has only offered the legal minimum pension plan.
House prices are outstripping wages so quickly that it's pretty pointless to scrimp, save and live a poor quality of life to save 1000s for a deposit when the goalposts are quickly moved and what you plan to have in a couple of years time wont be enough.
Our situation is far from unique. I'm not mad about it, its just the way things are and I'm content with my life.
The government in charge is going to have a massive headache in 40 years when an entire generation needs care and housing because they haven't been able to accrue wealth through artificially inflated property investments and generous pension pots because just being alive is too expensive after 20 years of wage stagnation.
I wish I could give you 5* s for this. And, (and this is not to denigrate the City where I spent my working life) Birmingham is far from the most expensive place to live. I was about to comment (in another place) on a housing development not far from where I live. Five artists impressions, in two most (if not all) properties have balconies. I bet there is nothing under £399,999, Apparently, the new residents will bring wealth and prosperity into the area (according to a local councillor), so he is not expecting the 'just getting by'. If Sunak (or, indeed, Starmer) want to get the electorate on side, start by sorting out housing, and that doesn't mean chucking money at a few people, so they just get on the housing ladder. every now and again. Sort might mean making house prices affordable (how? No idea, I've never wanted to be an MP.) but also giving those who have to rent some security that they can't just be chucked on the streets.