Rising prices have forced more people into financial trouble than Covid-19, according to a study that has tracked UK households since the start of the pandemic.
A total of 1.6 million more households are struggling than the last time the study reported nine months ago. It brings to 4.4 million – one in six – the number of households estimated to be in “serious financial difficulties” across the whole population.
The majority of those have cut the quality of food they eat, a third have pawned possessions and a quarter have cancelled insurance. Credit card debt has increased. And a quarter has zero savings. The proportion of households behind on at least one bill jumped from 9% to 14%.
Single parents, renters, disabled people and families with three or more children are worst affected. The proportion of households considered secure has fallen from 38% to 31%, and Wales and Scotland are worse affected than England and Northern Ireland, with more than one in five households in “serious difficulties” financially.
The only section of the population in less financial strife since October 2021 are those with income of more than £100,000
Mubin Haq, the chief executive of Abrdn Financial Fairness Trust, part of the team that conducted the study, said, “Times are tough for everyone, but it’s those on the lowest incomes who are particularly feeling the effects of rising prices.”
No comments:
Post a Comment