A new survey by Legal & General has found that fewer households have money remaining at the end of each month to deposit into savings accounts – and 3 in 5 are at risk of falling into debt.
Savings are being hit from almost every direction – high inflation is reducing their value and higher fuel prices and food bills mean fewer people can afford to put anything aside at the end of the month.
And according to Legal & General’s MoneyMood Survey, 1.3 million UK households have said that they are worse off now than they were 9 months ago. 57% of the 1,000 adults polled said they are struggling to cover their expenses.
Regional differences paint a particularly bleak picture for the Midlands, with around two thirds of households in the West Midlands and 63% in the East Midlands reporting trouble in keeping up with their bills.
The result is that fewer people are saving. The survey, which polled respondents in September last year and again in June this year found that, last year, 50% of respondents said they had money aside at the end of the month. In June this year that proportion dropped to 43%.
“Our findings indicate that over a million more households across the nation are struggling to make ends meet compared to only nine months ago,” said Mark Gregory, executive director of savings at Legal & General, adding that this meant 6 in 10 households can no longer afford to save.
Moneyhighstreet comments: “If you can’t afford set money aside, start by reducing household bills in any way you can. Switching to a cheaper energy supplier and getting on top of your debts can help you put money aside.
“Once you are able to save a little, choose a bank or building society that is offering new savings accounts with attractive bonus rates – but remember to review your interest rate regularly, in case you can get a better deal elsewhere.”