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Wage rises and low inflation but Brits still worried about finances

Joanna Faith
Written By:
Joanna Faith

Despite wage rises and persistently low inflation, almost half of British people feel no better about the state of their finances compared with a year ago.

Average wages have increased by 2% in the past 12 months and consumer price inflation has been hovering around the zero mark, yet 47% of UK adults are just as concerned about their money situation now as they were in 2015, according to research by Sainsbury’s Bank.

A quarter said they were less confident about their finances. However, the same amount said they felt more upbeat.

People aged 18-34 were most confident while those aged 55 and over were most likely to feel less confident than 12 months ago.

In total, 73% admitted to having some financial concerns and for 26% of people, their biggest money worry was the cost of living. One in twenty people were most concerned about their children’s financial future, while just 5% said rising interest rates were their main concern.

To help save money, 65% plan to shop around for a better quote for one or more insurance products, 39% expect to switch gas and electricity supplier and 37% will look for cheaper phone and broadband contracts.

One in four plan to use reward points and discount vouchers this year to help make their money go further.

Simon Ranson, head of banking at Sainsbury’s Bank said: “Our research shows that people’s hourly earnings have gone up 3.9% over five years. And with inflation now going down, we should be starting to feel better off. But many people are still concerned about their family finances however and are shopping around to secure the best available deals.”