36% of people ‘struggling financially’

Around four in 10 women say they are struggling financially, as are three in 10 men, according to “alarming” survey findings.

Some 41% of women surveyed for pensions and retirement specialist LV=’s Wealth and Wellbeing Monitor in late June said they are struggling financially, with 30% of men saying the same.

Overall, more than a third (36%) of those questioned said they are struggling financially, which was the highest proportion in LV=’s quarterly survey of 4,000 people across the UK since September 2020.

Some 38% said they are worried about money – a proportion which has increased every quarter over the past year – LV= said.

The research also indicated that parents with young children were twice as likely as the general population to say they had fallen behind with or missed utility bill payments in the previous three months.

Around 7% of people generally said they had fallen behind on or missed utility bill payments in the past three months, compared with 14% of parents with young children aged 10 or under.

Parents with young children were also particularly likely to say they had recently taken on high-interest loans.

Meanwhile, just over a quarter (26%) of workers surveyed said they have less than £1,000 in savings.

Around 8% of people said they had needed financial support from friends and family in the previous three months – double the amount in the previous quarter.

Clive Bolton, managing director of protection, savings and retirement at LV=, said: “The findings of the LV= Wealth and Wellbeing Monitor are alarming and highlight how precarious the finances of millions of people are.

“The research shows that rising prices are squeezing incomes, making many financially vulnerable.

“Millions of people – and particularly those with young children – are struggling and things are likely to get worse as interest rates rise and if the economy goes into recession.

“Consumer sentiment is in many ways worse now than during the dark days of lockdown.

“In April last year our research showed that lockdown meant large numbers of people were saving money, but now people are responding to increased living costs by saving less and spending less on socialising.

“Millions say they are even struggling to pay utility bills, have taken out additional loans or are turning to friends and family to make ends meet.”

A package of cost-of-living support measures is being distributed.

The Department for Work and Pensions (DWP) said last week that more than 7.2 million payments of £326 have already been made to help households.

A total of £2.4 billion has been paid to households on low incomes in England, Wales, Scotland and Northern Ireland, with a second instalment of £324 arriving later this year.

The support package will also include a £400 grant to help with energy bills, a £150 disability payment and an extra £300 for pensioner households.