Nearly 4.5 million British families are in serious financial difficulty

The number of UK households facing acute financial hardship has risen by nearly 60% since October and is now higher than at any time during the coronavirus pandemic, a survey has found.

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(Bloomberg) – The number of UK households facing acute financial hardship has risen by almost 60% since October and is now higher than at any time during the coronavirus pandemic, a survey has found.

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The abrn Financial Fairness Trust and researchers from the University of Bristol have estimated that 16% of households, or 4.4million, are in ‘serious financial difficulty’ and a further 20% are ‘struggling’ to cope .

The results illustrate the growing consequences of the worst cost of living crisis in a generation. The squeeze is expected to intensify in October, when another spike in energy bills is expected to see inflation top 11%.

The pressure on the government to do more to help comes amid political turmoil after Prime Minister Boris Johnson was forced to resign last week. In May his government announced an additional £15billion ($18billion) in aid for the cost of living, but there are growing calls for further aid to be announced long before a successor to Johnson not be chosen.

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“Times are tough for everyone, but it is those with the lowest incomes who are particularly feeling the effects of rising prices,” said Mubin Haq, managing director of the trust. “Wages have largely stagnated and no longer follow inflation; and social security is lower in real terms than it was over a decade ago. A more comprehensive and longer-term plan is urgently needed to ensure living standards do not fall further.

More than half of those surveyed for the Coronavirus Financial Impact Tracker consider their financial situation to be worse than at the start of the pandemic. When the same question was asked in October, only a third thought his situation had deteriorated.

The report released on Monday outlines the efforts many are making to save money.

Of those experiencing serious financial hardship, 71% have reduced the quality of the food they eat, 36% have sold or pawned goods, and 27% have canceled or not renewed insurance.

Measures to save on energy bills this year include bathing and cooking less, while more than a fifth of casual workers had stopped or reduced their pension contributions. Single parents, social tenants and households with children are the hardest hit.

“It is particularly worrying that people are potentially accumulating future financial problems for themselves,” said University of Bristol professor Sharon Collard.