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A £50 rise in monthly costs would push a third to financial breaking point - Turn2us

MoneySupermarket.com website (link opens in a new window)Household finances in the UK are now so stretched that over a third of the adult population (36%) believe a rise in monthly outgoings of £50 or less would push them to financial breaking point.  Of these, one in five say they are now sitting on the brink, finding it impossible to meet their monthly bills and costs.

The figures are taken from the MoneySupermarket.com Affordability Tipping Point research, which measures the 'pounds and pence' point at which household outgoings rise to overtake income. The report also reveals that people in the UK have, on average, seen their household outgoings rise by £56 a week over the last six months, suggesting that this £50 monthly 'tipping point' limit could literally be just around the corner for millions as the cost of living continues to rise.

The study also reveals the following trends:

  • Credit creep: 44% of adults have increased their use of credit over the last year to help them make it through each month. 24% say they have relied more on credit cards and 17% have turned to authorised overdrafts to help them meet regular household outgoings, while 13% have relied on hand outs from friends and family.
  • Budgeting nation: - 79% of households in the UK are now on a budget irrespective of demographic, income bracket or family set up. The rising cost of food  and utility bills have had the biggest effect on budgeting.
  • Salary pressure - In addition to the squeeze on spending  is the battle to hold onto current salaries or increase them in line with inflation. While many people have not seen salary increases for some time, just over 12% have been forced to take a pay cut in the last 12 months.

If you are struggling to make ends meet, use the Turn2us Benefit Calculator to check your entitlement to welfare benefits and the Turn2us Grants Search to see if you would be eligible for a grant from a charitable fund, depending on your personal circumstances, background and needs.

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Read the Money Supermarket.com press release (link opens in a new window)

 

Source: Telegraph article (link opens in a new window)

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