Households are being urged to get their finances in the best shape possible amid increasing evidence of increased stress over the growing cost of living crisis – now said to be the main concern for people across the UK.
A debt advice charity told Sky News it was helping thousands of new clients navigate problem debt as families grapple rising bills across the board – a situation that is tipped to only accelerate as the year continues.
The Bank of England was particularly gloomy last week when it predicted the economy was now at risk of entering recession.
It saw inflation potentially rising to a 40-year high, above 10% by the year’s end, when a further big hike in the energy price cap is expected to be implemented.
Three reports released on Wednesday highlighted growing anxiety, as the government resists demands to splash the cash and provide further financial relief.
The National Institute of Economic and Social Research estimates 1.5 million British households, one in 20 of the total, will soon face bills for food and energy which will exceed their disposable income after housing costs. It also forecasts the UK entering a recession in the second half of the year.
Meanwhile a survey by the consultancy BritainThinks found the cost of living was now the dominant concern for UK households, with 90% worried about the effects of rising prices.
It also suggested that almost half were driving less or using less gas and electricity at home to limit the impact from record wholesale prices – exacerbated by Russia’s war in Ukraine.
More than of half those questioned were already buying value ranges.
The report said that 10% of people were already struggling to stay afloat and “very pessimistic” about affording essentials in the months ahead.
Source : skynews
