Many Brits ‘struggling to make ends meet’

Up to 2.4 million households across the UK are currently struggling to make their finances stretch to the end of the month, new research has shown.

According to the latest MoneyMood survey from Legal & General, the last 12 months have seen an increase of almost one-quarter of a million (240,000) people who report they are struggling to make ends meet, despite the fact the economy appears to now be moving in a positive direction.

Overall, one in eight respondents (12 per cent) in July this year stated their essential bills are not covered each month by their pay cheque – up from 11 per cent who made this claim during the same month of 2013.

On average, the typical monthly shortfall by those facing financial hardships stands at £60, and while this is a 30 per cent improvement from the £85 reported last year, the fact so many people are falling into debt as a result of a lack of sufficient monthly income is a worrying sign.

Across the country, the south-west of England was shown to be the most badly affected region at present, with the typical monthly shortfall in this area standing at £301 – this compared to £113 in the north of England, £111 in London, £57 in Scotland and £42 in Wales.

John Pollock, chief executive officer at Legal & General Assurance Society, commented: "Despite the recent upturn in the UK economy our MoneyMood survey shows we are not yet seeing an upturn in household finances with more homes worse off this year compared to July 2013.

"In July 2014 a quarter of a million more homes are struggling to avoid sinking into debt than at the same time in 2013. Perhaps a clear sign that household income growth continues to lag behind economic growth."

Across the board, the remainder of respondents to the body's poll were split evenly – 44 per cent each – between those who said they are "surviving" (covering all bills and debts) and those who are "stable" (have money left over each month).

Posted by James Francis