Brexit vote rattles financial confidence of four in ten adults

Four in ten Brits (40 per cent) feel less financially secure after the UK voted to leave the EU.

The survey of more than 6,000 UK adults published by CompareTheMarket also found that almost six in ten (58 per cent) now expect household bills to go up while 42 per cent predict that the cost of home, motor and travel insurance will skyrocket.

In contrast, less than a third (32 per cent) said the result of the EU Referendum would have no bearing on their financial stability.

Over a tenth of respondents (11 per cent) said they were now less likely to holiday in Europe after the pound plummeted by more than ten per cent to its lowest point since 1985, following news of the Brexit vote.

Gemma Sonfield, head of travel at CompareTheMarket.com, said: “Now that the British people have voted to leave, and the pound has depreciated, it appears that there is little appetite to book a last minute holiday to the continent.

“If this is the case, that may be more than six million people from the UK avoiding the beaches of the Mediterranean and possibly opting for a staycation instead.”

What now? 

The AA motoring group has already admitted that the weaker pound is likely to result in high prices at the pumps.

Any changes to insurance costs won’t be as immediate though, said Huw Evans, director general of the Association of British Insurers (ABI), which actually called for the UK to remain in the EU days ahead of polling.

He reminded customers that the insurance and savings industry was built to withstand uncertainty and urged them to “avoid hasty financial decisions”.

Mr Evans added: “For the UK government, it will be important now to focus on ensuring the UK remains a globally competitive place to do business with the best possible future trading network with the EU and the wider world.”

The ABI has also reminded Brits that until Article 50 of the Lisbon Treaty is activated – a process that can take up to two years – the UK still technically remains part of the EU, therefore all insurance policies remain unchanged.

The Bank of England also said it had taken all necessary steps in preparation of a Leave vote, preparing extensive contingency plans to mitigate against near-term risks to financial stability.