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Gloomy Outlook for UK Households

Written By On 19/11/2013

There are now nearly one in five households across the UK that cannot keep up with the general cost of living according to a survey conducted by Legal & General.

What is even more worrying is that this is an increase of nearly a third in comparison to last year.

The statistics were taken across eleven areas of the UK including Scotland, with London and the East Midlands appearing to be struggling the most.

However Wales, together with the South East and East Anglia seem to be displaying better results, as households in those areas say they are coping easier than the same period last year, whilst no change was recorded in the North West.

This report comes shortly after yesterday's analysis released by the Markit Household Finance Index. They researched one thousand five hundred homes and the numbers showed unusually alarming statistics for the last month.

According to the financial services company, for every family that said their finances had improved, there were another four who said the opposite. This has now dampened the earlier optimism about Britain's economic recovery that the general public had been feeling. It says that householders are the most pessimistic they have felt in over six months as nearly half that were surveyed feel their financial predicament will deteriorate next year.

Both reports recognised energy inflation as a major factor for these results. Public transport increasing at the beginning of next year is also a big concern along with any fuel hikes.

And figures released from the Office for National Statistics informed us a few days ago that the average salary has only risen by an annual growth of approximately 0.7%. Unfortunately this creates another problem as inflation is growing at a much higher rate of around 2.2%.

John Pollock spokesman for Legal & General commented

The reality of the UK today is that people are worse off despite the recovery in the economy, falling unemployment and lower inflation.