Credit, Collections & Insolvency News
Latest ONS figures have highlighted the impact of increased cost of living with adults not being able to afford an unexpected expenses.
The figures showed that over 8 in 10 (83%) adults reported an increase in their cost of living in March 2022 compared with around 6 in 10 (62%) adults in November 2021.
Early 2022 saw an increase in the price of food shopping (90%), gas or electricity bills (79%) and the price of fuel (71%) were the most common reasons reported by adults who said that their cost of living had increased.
In early 2022, 29% of adults reported that their household could not afford an unexpected, but necessary, expense of £850. The analysis also looked at which adults were most likely to be unable to afford an unexpected, but necessary, expense of £850 after controlling for a range of characteristics in early 2022 (6 January to 27 February 2022):
Adults on the lowest incomes, those renting their homes or those with no formal qualifications were most likely to report they could not afford this unexpected expense.
The analysis also found that parents of dependent children, adults who were divorced or separated, disabled adults, and those living outside of London, the South East and South West were more likely to report they could not afford this unexpected expense.
Commenting on the figures, Sarah Pennells, Consumer Finance Specialist at Royal London said “The cost of living is rising faster than at any time in the last 30 years, causing a real challenge to households up and down the country who are trying to make ends meet.”
“Figures from ONS show that eight out of ten (83%) adults reported an increase in their cost of living in March 2022, compared to six out of ten (62%) adults in November last year. The most common reasons for increased living costs were food shopping (90%), energy bills (79%) and the price at the petrol pumps (71%). Unfortunately, the situation is set to get worse from April as life becomes even more expensive with further energy price rises and the increase in National Insurance contributions kicking in.”
“From our own research we know household finances are being stretched to such an extent that 95% of UK adults worried about rising costs. The issue is so widespread that people across the earning spectrum are feeling the pinch, with nine in ten people admitting they face difficult choices to try and make their money stretch.”
“Many people are planning changes to their outgoings to pay for cost of living increases, but anyone that feels they’ve run out of options should ask for help from debt advice charities and make sure they claim all the help they are entitled to in the way of state benefits or other government help.”