Half of households wouldn’t cope if monthly bills rose by £100
Increasing prices and stagnating pay are putting a huge strain on UK household finances, with 46% admitting that if their monthly outgoings increased by £99 they would find it very difficult to cope.
A further 26% would be stretched by an increase in monthly outgoings of up to £49, with 13% admitting that they would struggle with an increase of £24.
The Halifax report also showed that those in their 40s and 50s are the most financially stretched, with 18% of both these age groups now so close to the edge they would find it difficult to cope with an increase in expenditure of just £24 a month.
Anthony Warrington, director of personal current accounts at Halifax, said:
“Rising prices are putting disposable income under increasing pressure, but with essentials such as mortgages/rental payments, food, and energy/fuel bills taking up the largest chunk of household spending it leaves some households with little room for manoeuver.
“Those in their 40s and 50s are most likely to have family living at home, which means their food and energy bills are likely to be higher.
“There is no quick way to ease the squeeze on households and many are already cutting back where they can. With so many households at full stretch it’s even more important to make strict budgets and keep on top of finances and outgoings.”
Looking at the year ahead and 62% of UK households are either very or fairly concerned specifically over their ability to save for the future.
More than half express fears about having enough money to cover future living costs and bills. And a third are worried about paying their rent or mortgage.
Warrington added: “Money worries can be a major headache, but tackling these concerns by keeping on top of your finances can help you to feel more in control.
“Even simple things such as paying bills by Direct Debit means you can’t forget to pay and possibly be penalised, and can even result in discounts from some firms.”