MORE THAN HALF OF PEOPLE IN UK FEEL POORER NOW THAN THEY DID FIVE YEARS AGO: SURVEY FINDS

Mon 29 July 2024:

More than half of people feel worse off now than they did five years ago, according to a survey of 6,000 people, showing that the cost of living crisis continues to bite.

A study by price comparison website Compare the Market found that 53 percent of people feel poorer than they did at the end of last decade, with six in 10 having no confidence that their energy bills would be lower over the next year under the new Labour Government, i News reported.

Guy Anker, director at Compare the Market, said, “There’s no doubt that the cost of living over the last few years has been incredibly tough for so many households around the UK, with over half feeling poorer today than they did five years ago.”

“While it is recognised that events beyond any government’s control have significantly added to the difficulty in supporting households financially, it is nonetheless clear from our research that people want to see the new Government actively do more to make them feel better off,” Anker added.

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Both renters and mortgage holders have been struggling under historically high interest rates, with the Bank of England’s 5.25 percent base rate currently stuck at 16-year highs.

The comparison website’s findings come as almost a third of renters have been forced to turn to government benefits as a result of spiralling rental costs in the UK.

According to recent research from lender Creditspring, three in 10 renters have had to lean on benefits to get by, with another 40 percent stating that this is the most financially unstable they have ever felt.

Neil Kadagathur, chief executive at lender Creditspring, previously told i, “As rental prices have soared in recent years, many renters have raided savings pots and borrowed to make ends meet. After exhausting those options, many renters are now forced to turn to benefits to meet their monthly bills.”

Research published by data-gathering website Statista suggests landlords were increasing their prices due to the rising cost of running a rental property.

Sharp rises in rental values have a greater disproportionate impact on young people, who are less likely to have made it on to the housing ladder and more likely to be living in rental accommodation.

As such, further research from Creditspring previously found that money worries are creating a mental health time bomb for young people, with almost 40 percent of 18- to 34-year-olds saying their mental health has significantly worsened as a direct result of the cost of living crisis.

The lender found a third of young people say they are more in debt now than they were 12 months ago, with a further third saying their financial worries have reached the point where they are unable to sleep.

Kadagathur said, “Forced to put up with ever-growing essential costs, many renters are faced with little option but to borrow each month to keep pace with rising rents – a vicious cycle where debt piles soar but savings pots vanish as they struggle to make ends meet.”

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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