A new ‘Wealth and Wellbeing' survey suggests that more than half (53%) of people say their finances have worsened over the past three months. The study in June of 4,000 people across the UK found that around two in five (43%) expect their finances to deteriorate over the next three months.
LV=, which carried out the quarterly research, said the latest findings are the most negative since June 2020, when its survey started. Six in 10 (61%) people who took part said their total monthly outgoings had increased over the previous three months, while 20 per cent said the amount they are saving had fallen over the same period.
Nearly 58 per cent of respondents have seen an increase in their supermarket spending, while three in 10 (31%) are spending less money on socialising. More than a third (36%) described their financial situation as ‘struggling’ - and LV= said this has increased each quarter over the past year.
Nearly two-fifths (38%) are worried about money, rising to 46 per cent of 18 to 34-year-olds and 44 per cent of parents with children aged 10 years old or under.
Commenting on the findings, Clive Bolton, managing director of protection, savings and retirement at LV= said: “The results of the latest LV= Wealth and Wellbeing Monitor highlight how the finances of millions of people are being squeezed by the large rise in the cost of living.
“The indices for savings, financial outlook and outgoings are the worst recorded since we started surveying consumers during the coronavirus pandemic, and worse than in the dark days of Covid.
“Consumer sentiment had been steadily improving between spring and early autumn 2021 but the sharp rise in the cost of living has dented consumers’ confidence.
“Millions of people say they are struggling financially and standards of living are falling across the country.
“Rising energy prices are becoming a significant problem for many people, and many families with young children and low income households are struggling.”
Cost of living financial help
A package of cost of living support measures will be delivered over the next few months starting with a payment for £326 for more than eight million households on means-tested benefits from July 14, with the second instalment for £324 due to be made in the autumn.
People on disability benefits will receive a one-off payment for £150 in September and pensioner households will receive an extra £300 on top of their annual Winter Fuel Payment, due to be paid in November and December.
From October, households paying directly for their electricity will have £400 taken off their energy bills over the following six months. This simply means that everyone paying for their gas and electricity will get the grant, however, people in park homes will not be eligible unless they have a direct connection which they pay for, and not through a third party.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
This support will apply directly for households in Scotland, England and Wales.
The threshold for paying National Insurance (NI) was also raised to £12,570 this week, meaning some 30 millions people will see an income boost in their July pay packets.
However, this follows a controversial 1.25 percentage point increase in NI earlier this year to pay for health and social care.
Maximise your income
The easiest and quickest way to make sure you're bringing in as much money as possible to combat rising costs is to check entitlement for additional support by using an online benefits calculator.
What is an online benefits calculator?
Online benefit calculators quickly work out if you are missing out on any benefits and best of all, they are completely free, independent and confidential to use - so there’s nothing to lose.
In just a few minutes you could find out how much you may be able to claim in extra support, just by entering details about yourself, your residential status, your working status and any savings you have.
You can use an independent benefits calculator to find out:
- What benefits you could get
- How to claim
- How your benefits will be affected if you start work
Where to find help
Advice Direct Scotland
This online tool is the first to fully integrate devolved benefits, including the Scottish Child Payment.
It provides a free and impartial assessment of entitlement to a range of benefits such as Universal Credit, crisis grants and support payments.
Turn2us
Information on income-related benefits, Tax Credits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work or change your working hours.
Policy in Practice
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit, how these are calculated and how your benefits will be affected if you start work or change your working hours.
entitledto
Information on income-related benefits, Tax Credits, contribution-based benefits, Council Tax Reduction, Carer’s Allowance, Universal Credit and how your benefits will be affected if you start work.
What you will need
You will need accurate information about your:
Savings
Income, including your partner’s
Existing benefits and pensions (including anyone living with you)
Outgoings (such as rent, mortgage, childcare payments)
Latest Council Tax bill
To keep up to date with the most-read money stories, subscribe to our newsletter which goes out three times each week - sign up here.
