Around 2.5m UK households struggling with finances, study shows
Legal & General has published its latest MoneyMood Survey, revealing that the number of households that say they are currently struggling – in terms of lacking income to pay bills – currently stands at around 2.5 million.
This is around the same level recorded in last year’s survey and around 300,000 higher than in 2010, before the double-dip recession kicked in.
Very few homes claim to be doing well compared to two years ago, with the percentage of survey respondents saying they have money left over after paying bills and debts falling from 50 to 44 per cent – the equivalent of around 1.3 million families.
Moreover, money worries are likely to increase for many people as the winter months approach, due to the fact that people will need to spend more on expensive gas and electricity supplies to keep their houses warm during the cold nights.
Mark Gregory, Legal & General’s executive director for savings, said: “Higher inflation figures for October will not be welcome news and we believe the cost of fuel is likely to make balancing household finance even harder for those with lower incomes.
“With one in five already saying they are in fuel poverty and a further fifth almost in fuel poverty, any rise in the amount spent on fuel is likely to have a significant impact.”
Exacerbating this issue is the fact that five out of the UK’s six major energy suppliers will have introduced price hikes by the end of the year, further squeezing embattled families.