The well off are better off but 1 in 8 homes are still struggling according to the latest Legal & General Moneymood survey
11 November 2014
The latest MoneyMood Survey shows one in eight homes (12%) are struggling to make ends meet in Q4 2014 (which would be equivalent to 2.3 million households if carried across the whole of the UK).
A million fewer households struggling with finances…
This is a significant improvement, down by over 1 million compared to the same period last year when one in six (18%) households were struggling to pay bills (equivalent to 3.5 million in October 2013).
Almost 1.5 million homes are better off compared to last year:
Another piece of good news appears to be that the number of “financially stable” households, those who say they have “money left over after paying bills and debts” has risen year on year.
From 2013 to 2014 the number of “stable” households in our survey has increased from 40% to 47%, which would be equivalent to 1.47 million households if carried across the whole of the UK.
MoneyMood Survey ® - Fewer households struggling, more households better off - October 2014
And monthly saving up by over 17%…
The research also indicates that, for households that are financially stable and who can afford to save, the average saved is £120, up 17.5% on figures a year ago (£102 in July 2013).
MoneyMood Survey ® How much can you afford to save at the end of each month? October 2014 vs. July 2013
Signs of a recovery in household finances:
Commenting on these findings John Pollock, Chief Executive Officer, Legal & General Assurance Society said; “Our MoneyMood survey suggests we may be seeing signs of recovery in household finances. Two key measures in our latest MoneyMood show finances at home are stronger compared to a year ago.
Firstly, almost one and a half million more homes say they now have some money left over after paying bills and debts. The second indicator is an increase in the amount saved on average each month, suggesting that more families who have money left over are putting money into savings. The average has grown to £120, up 17.6% from £102 in July year, which could represent a move towards a return of the saving culture.
We hope the improved strength of household finances will eventually mean that more people will be able to return to saving for the long term.
However, it’s not all good news. Although the number of homes who are struggling to make ends meet appears to have fallen year on year, we estimate there are still 2.3 million homes struggling to avoid sinking into debt. Perhaps a reminder that while wage inflation continues to lag behind price inflation; household income growth will remain elusive for some households.”
Biggest changes in monthly saving …
The biggest rise in average monthly saving is in London where the average is £265, up £166 per month compared to last year.
Only two regions are showing a fall in average monthly saving, the South West, which at £70 is down £47 per month and Wales at £51, down £9 compared to last year.
REGIONAL DATA – change in the number of households who are struggling to survive:
Compared to October 2013 the number of homes saying they are struggling is lower in every region.
The number of households saying “I am spending more than I earn on paying bills and debts each month” has fallen by 1.196 million overall.
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 18-20 October 2013 and 17-19 October 2014.
For more information please contact:
PR Manager Savings
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