Press releases


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

14 August 2012

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

New research from the Legal & General MoneyMood Survey shows household finances across the country are weaker than at the same point last year. More homes are “struggling” with income not enough to pay bills, and fewer homes have income that exceeds bills and debts. However, the survey also shows that, for those who say they’re struggling, the amount of money they are “short” each month on average) has halved since the beginning of the year as the positive impact of falling retail prices kicks in.

More “struggling” compared to last year…

MoneyMood reveals that the number of households who say they’re “struggling” has risen by just over 340,000 at the end of July 2012 compared to the middle of 2011.
The number of “stable” households, those who say they have some money left after paying bills each month, has fallen by 600,000.

MoneyMood Survey® Expense cover June 2011 versus July 2012 


  MoneyMood Survey Expense cover June 2011 versus July 2012  


Monthly “shortfall” falling…

In January this year the Money Mood survey began monitoring how much households
who are struggling to make ends meet are falling short each month.

Our latest survey shows households across the country are managing to reduce their shortfall following falls in the cost of living.

Commenting on these findings Mark Gregory, Legal & General Executive Director Savings said; “The continued economic recession appears to be gradually squeezing household income with more homes struggling to stay out of debt this year.
However, the good news is that lower inflation and falling costs of utilities, fuel and food since the start of this year has helped the less well off households to cope better with paying bills and debt. For those families who are struggling our latest figures indicate the average shortfall nationwide has halved to £42 per month,compared to an average of £96 in January. Homes in London, the Midlands,Yorkshire and the North West appear to have benefited the most with the biggest reduction in monthly shortfalls compared to the national average. Despite the lower figure for July, London has again recorded the highest monthly shortfall at £99 per month (down from £261 in January).”
Mark Gregory, Executive Director, Savings

MoneyMood Survey® How much are you short at the end of the month after paying bills?
January/July 2012 


  MoneyMood Survey How much are you short at the end of the month after paying bills?  


Yorkshire and Humberside has produced the biggest reduction in the average monthly shortfall with a
drop of over 85%, down to £22 from £161 in January.
West Midlands and London are the next biggest fallers managing to reduce monthly average shortfall by
70% and 60% respectively.
However, East Anglia and the North of England have both seen a slight increase in average shortfall,
perhaps indicating that household finances remain under pressure in these regions.


The figures vary significantly in a number of regions. The number of homes struggling to meet bills is
higher across the nation but has fallen in London, Scotland, the North West and West Midlands.
In the East Midlands, the South (excluding London) and Wales we have seen a significant increase in
the number of households struggling to make ends meet.

Regional Data Summary
RegionNumbers of households "struggling" June 2011Number of Households "struggling" July 2012Change in 2012 vs. 2011Based on Households per region (million)
 N East134,400 140,4806,0800.8
 N West 319,700 301,070 -18,6302.3 
 Yorks and Humber 219,600 211,680 -7,920 1.8
 E Midlands 192,000 345,440 153,440 1.6
 W Midlands 360,000 329,040 -30,960 1.8
 East Anglia 174,000 183,600 9,600 2.0
 London 526,500 394,200 -132,300 2.7
 South East 356,700 521,130 164,430 2.9
 South West 159,800 343,400 183,600 1.7