Personal Finance

Households 'struggle to save money'

A new study has shown that an extra 1.3 million households in the UK are struggling with their finances than nine months ago.

Due to continuing financial uncertainty, households are finding it difficult to "make ends meet", according to the MoneyMood survey by Legal & General.

The report highlighted that around 12 million of the country's 21 million households are left with no money after paying off bills and debts every month, an increase from 10.7 million nine months ago.

This indicates that nearly six in 10 (57%) households "are budgeting on a fine balance between managing to pay bills and sinking into debt" and cannot manage to save money. This is compared with 51% recorded in September last year.

The rocketing cost of food, drink and fuel is largely blamed for the deteriorating condition.

In recent months, the consumer prices index (CPI) measure of inflation has reached 4.5%, more than double the Bank's 2% target.

Mark Gregory, Legal & General's director of savings, said: "The continuing financial turmoil has created millions of households for whom saving has become almost impossible as they struggle to cover bills and debt repayments."

Sam Jackson

Money Dashboard