UK households ’11 days away from the breadline’

UK households made up of people of working age (18 to 64 years old) are only 11 days away from the breadline. 

Figures released by Legal &…

UK households made up of people of working age (18 to 64 years old) are only 11 days away from the breadline. 

Figures released by Legal & General highlight just how precarious a position many Britons are finding themselves in, with it being clear not enough money is being put to one side for a rainy day.

Despite the fact consumers think their savings would keep them going for 72 days, in reality less than two weeks after a change in their personal circumstances they would be relying on state benefits and handouts from friends and family.

Over-65s are better placed, because they have already planned for retirement and so they could last for longer. The average household could go 26 days without any financial assistance. 

However, the figures represent an improvement from when the same study was carried out six months ago, as the average breadline figure then was only 18 days. This demonstrates how consumers have been able to get their hands on more disposable income in this time period.

John Pollock, chief executive officer of Legal & General Assurance Society, is pleased to see the economic recovery is now "starting to trickle down to ordinary households" as people are saving more. 

"It serves as a stark reality check to see that most of us are still in a precarious financial situation – the average working age family is just 11 days away from the breadline," he added.

Mr Pollock believes an ongoing problem is the relationship between earnings and the cost of living. As long as the latter continues to increase above inflation, households will be under pressure to make ends meet. 

He believes now is the time for people to lay "foundations for long-term financial stability" and part of this should include effective debt management. If individuals fail to bring their arrears under control, they run the risk of racking up debts and failing to build up a sufficient rainy day fund.

By Amy White

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