Press releases

More than a million UK households worse off compared to nine months ago says Legal & General MoneyMood Survey.

Mark Gregory - Group Chief Financial Officer
Mark Gregory
Group Chief Financial Officer

04 July 2011

Mark Gregory - Group Chief Financial Officer
Mark Gregory
Group Chief Financial Officer

Commenting on these findings Mark Gregory, Legal & General Executive Director Savings said; “Persistently high inflation, higher fuel prices and rising food bills are clearly taking a toll on UK households. In September last year half of households (50 per cent) in our national survey said they had spare money after all their regular outgoings are taken into account. At the end of June this dropped to 4 out of 10 (43per cent) who said they had “some money left over after paying bills and debts”. [click on the link on the right to download this chart]

Most households in the UK say they are more inclined to save (60 per cent) than spend (23 per cent). However, our findings indicate that over a million more households across the nation are struggling to make ends meets compared to only nine months ago. That means around 6 out of 10 UK households can no longer afford to save.”

“The continuing financial turmoil has created millions of households, for whom saving has become almost impossible as they struggle to cover bills and debt repayments. Our latest figures indicate that almost 12 million homes in Britain are budgeting on a fine balance between managing to pay bills and sinking into debt.”

Mark added: “The low interest rate does seem to be having a continuing benefit for households who are currently paying a mortgage. Among mortgage payers half said they have “Expense cover”, money left over after paying bills and debts. For the time being the BoE’s decision to keep interest rates on hold at 0.5% is good news for these households. The return of higher mortgage costs could unbalance the finances of these households if the Bank of England decides to put up rates.”

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

Appendix one
 RegionPopulation (million)% TotalHouseholds (million)Households worse off in last 9 monthsStruggling to cover expenses %Struggling to cover expenses (000’s)
N East2.64.00.8115,00062%496
N West6.911.02.3Unchanged53%1,219
Yorks and Humber5.38.51.8Positive 234,00042%756
E Midlands4.57.51.6160,00063%1,008
W Midlands5.49.01.8200,00066%1,188
East Anglia5.89.02.0100,00048%960
S East8.414.02.9100,00056%1,624
S West5.28.01.7250,00051%884
N Ireland1.83.00.6Not auditedNot auditedN/A

Source – Office for National statistics 2010, Legal & General Estimates, MoneyMood survey.

Notes to editors

Survey - methodology:

Research for the Legal & General MoneyMood Survey was carried out by TNS Omnibus. Telephone interviews were conducted among a nationally representative sample (in GB) of around 1,000 adults (age 18+) between 24 to 26 September 2010 and the 17 and 19 June 2011.

The Legal & General MoneyMood Survey ® (registered by Legal & General Group plc).

The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2010, we were responsible for investing £365 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.

For more information please contact:

Mike Connolly

Mike Connolly
PR Manager Savings

t: +44 (0) 1737 375365
m: +44 (0) 7802 503917

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