Monday, August 01, 2022

Empty Pockets


More than one in eight UK households fear they have no further way to make cuts to afford a sharp increase in annual energy bills this autumn.

More than a quarter of households earning less than £20,000 worry they will be unable to cope with higher bills, with families in Yorkshire, the south-west and Northern Ireland the least confident about covering their costs.

Almost half of UK households are concerned about being able to keep up with rent or mortgage payments over the next 12 months as the majority realise they will have to make cuts elsewhere.

It recently emerged that a fifth of UK households now have an average shortfall of £60 a week between what they earn and what they need to cover essentials such as energy bills, rent, transport and food.

The amount that UK consumers borrowed rose by the fastest rate in three years last month, as households struggled to cope with the rising cost of living. People borrowed an additional £1.8bn in consumer credit last month, up from a £900m increase in May.

Pressure on households is expected to ramp up this autumn as the price of essentials – from clothing to food – continues to rise alongside higher energy bills.

More than one in eight UK households fear they have no way of making more cuts | UK cost of living crisis | The Guardian

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