Press releases

THE HOUSEHOLD FINANCE REPORT Q2 2013 - LEGAL & GENERAL MONEYMOOD SURVEY.

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

10 June 2013

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

More of us can afford to save …

More households (45%) say they have money left over after paying bills and debts than in April 2012 (43%). And fewer (15%) say they are struggling to pay bills and debts compared to the same period last year (16%). Perhaps an indication that household finances are improving in 2013.

To view the chart MoneyMood Survey ® “Covering bills and debts” Q2 2012 to Q2 2013 please click on the link on the right of this page.

Monthly shortfall is down …

Perhaps another indication that households finances are improving is the fall in average monthly shortfall (for those households who say they are struggling to pay bills and debts), down slightly to £72 on average from £74 per month in April 2012 (down 3%).

And monthly saving is up by more than 20% …

Across the nation we are saving more than this time last year. The latest figures show the average monthly saving (for those households who say they can afford to save) is £88 across the UK, up £17 per month (24%) since April 2012 (£71).

Regionally the figures perhaps tell a different story.

REGIONAL DATA

  • London (£103 pm), the South East (£97 pm), Wales (£72 pm) and Scotland (£116 pm) are all saying their monthly shortfall is higher than this time last year.
  • Elsewhere households who say they are “struggling to pay bills” appear to benefiting from falls in their monthly shortfall compared to April 2012.
  • Saving is down compared to last year in Wales (£63 pm), the North of England (£39 pm) and Scotland (£69 pm), and higher elsewhere, especially London (£103 pm), the South East (£151 pm) and West Midlands (£101 pm).

How much are you short at the end of each month?

To view the chart  showing regional figures for monthly shortfall please click on the document link on the right of this page.

How much can you afford to save at the end of each month?

To view the chart  showing regional figures for monthly saving please click on the document link on the right of this page.

We are weathering the economic storm:

Commenting on these findings Mark Gregory, Legal & General Chief Executive Savings said; “The good news is that more households can afford to save and most of these are managing to save more than last year with average saving per household, £88 per month, up 24%. 

Our latest survey shows that 300,000 more homes say they’re in a position to afford to save than a year ago. 

We hope that this is perhaps an early indication that we have weathered the current economic storms and we will see people saving in even bigger numbers going forward.

Perhaps the most important development this year has been a return to saving for retirement. Last quarter our MoneyMood survey showed positive early signs of a move back to long term saving, such as saving for a pension, up 25% on Q1 a year ago.

However, it’s not all good news. While we have seen a drop in the number of households who say they’re struggling to pay the bills, down 200,000 year on year, we are still seeing average monthly shortfalls growing significantly in Wales and Scotland.”

REGIONAL DATA – change in the number of households that can afford to save:

Across the UK the number of households saying they can afford to save – i.e. “have money left over after paying bills and debts each month” has risen by 300,000 year on year. Compared to Q2 2012 the number of homes saying they can afford to save is much higher in the Yorkshire and Humberside region and up year on year in London, the South East, and South West and also up slightly in Wales. But in the rest of the country fewer households have money left over for savings after paying bills and we have seen the biggest drop in the number who can afford to save in East Anglia, the North East and North West.

Households with money left over after paying bills and debts.

Regional data
Region“stable” have money left  over April 2012 (000s)“stable” have money left  over April 2013 (000s)Change in number of households who can afford to saveBased on Households per region  (million)
North East448,000320,000 Down 128,000 0.8
 North West1,127,000989,000 Down 138,000 2.3 
Yorks and Humber540,000 972,000 Up 432,000 1.8
 East Midlands 912,000816,000 Down 96,0001.6
West Midlands 738,000648,000 Down 90,0001.8
 East Anglia1,060,000 900,000Down 160,0002.0
 London 918,000
Loading...