Report: UK households struggling to make ends meet

Soaring inflation has left UK household finances in a precarious state, according to a survey by a leading insurance firm.

Legal & General’s (L&G) most recent Rebuilding Britain Index (RBI) found that 95 percent of households with one or more people in work have suffered a cut in real wages over the past year. The figure rises to 99 percent for households with an income below £20,000.

The result of this squeeze has been significant: 47 percent of households are concerned about falling behind on rent or mortgage payments, while 54 percent have had to cut back on day-today spending.

L&G’s chief executive, Sir Nigel Wilson, said: “Our research across 20,000 UK households exposes the stark choices that inflation is forcing on many people in Britain.

“Levels of employment continue to improve but real wages are lagging behind.

“It is particularly concerning to see that not only are the key RBI measures such as access to housing and healthcare stalling or falling nationwide, but that the cost-of-living pressures are widening the inequalities that the levelling-up agenda is aiming to address.”

The report also revealed the gap between London and the rest of the UK has widened in many cases. The Jobs and Economic Prosperity score for the capital increased to 73/100. The North-West’s score, on the other hand, stalled at 61/100.

Respondents were relatively uniform in their approach to long-term solutions. 59 percent said the government and private sector should invest more in energy efficient houses and offices and 52 percent argued for higher wages.

If you run a small or medium-sized business in Greater Manchester and want to understand how the cost-of-living crisis might impact your operations and revenues, GC Business Growth Hub’s #HereForBusiness package provides practical guidance and expert advice on a range of topics to help you manage the increasing cost of doing business.

If you have any questions, get in touch now.

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#HereForBusiness is funded by the UK government through the UK Shared Prosperity Fund.