3.5 MILLION HOUSEHOLDS STRUGGLING WITH FINANCES ACCORDING TO LATEST MONEYMOOD SURVEY.
19 November 2013
THE HOUSEHOLD FINANCE REPORT Q3 2013 - MONEYMOOD SURVEY
3.5 MILLION HOUSEHOLDS STRUGGLING WITH FINANCES
800,000 households worse off compared to a year ago…
New research from the Legal & General MoneyMood Survey indicates household finances across the country appear worse than a year ago.
The number of households who say they are “struggling” (i.e. income not enough to pay bills) has risen to 3.5 million, over 800,000 higher than in October 2012.
Almost 1 in 5 homes (18%) are struggling to make ends meet compared to 1 in 8 (12%) a year ago.
MoneyMood Survey ® “Covering bills and debts” Q3 2012 to Q3 2013 (If you would like to view the charts showing the change in the number of homes that are struggling please click on the document on the right of this page.)
Fewer households can afford to save…
The number of “financially stable” households who are in a good position to save, i.e. homes that say they have “money left over after paying bills and debts” has fallen year on year.
From 2012 to 2013 the number of “stable” households in our survey fell from 44% to 40% - around half a million fewer homes. (If you would like to view the charts showing the change in the number of homes that can afford to save please click on the document on the right of this page.)
Commenting on these findings John Pollock, Chief Executive Officer,Legal & General Assurance Society said;
“The reality of the UK today is that people are worse off despite the recovery in the economy, falling unemployment and lower inflation.
The fact that household finances have taken a downturn over the last year is reflected in our MoneyMood survey.
Not only are we seeing that over 800,000 more households are struggling to make ends meet compared with last year, but our latest research shows a fall in the number of homes who can afford to save compared to a year ago.
Falling unemployment and lower inflation figures for October are welcome news but do not appear to be feeding through to stronger household finances.
The rising cost of fuel is likely to wipe out any benefits from falling prices for other goods and make balancing household finance even harder, especially for those with lower incomes. With one in three (34%) already saying they are in fuel poverty (based on the Govt. 10% indicator) the amount spent on fuel is likely to have a significant impact on how the less well off households cope with paying bills over the coming months.
The East Midlands and London appear to be the regions most affected with one in four households
who say they’re struggling to make ends meet.”
REGIONAL DATA - SUMMARY
The number of homes who say they’re struggling with household finances has risen significantly in 7 of the 11 regions surveyed. However, in the South East of England, East Anglia and Wales the number of struggling households has fallen since last year.
(If you would like to view the table showing regional data for the number of homes that are struggling please click on the regional data document on the right of this page.)
Source – Office for National statistics 2010, Legal & General Estimates, MoneyMood surveys.
SURVEY – METHODOLOGY
TNS Omnibus carried out research for the Legal & General MoneyMood Survey.
Telephone interviews were conducted among a nationally representative sample (in GB) of around 1,000 adults (age 18+) between 26-28 October 2012 and 18-20 October 2013.
Notes to editors
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.
The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies.
As at 30 June 2013, we were responsible for investing £440 billion worldwide on behalf of investors, policyholders and shareholders.
We also had over 7.3 million customers in the UK for our life assurance, pensions, investments and general insurance plans.
THE Legal & General MoneyMood Survey is registered by Legal & General plc.
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