Spending on essentials rose at nearly double the annual increase in non-essential spending in March, in signs of households making lifestyle adjustments in order to be able to afford ‘must-haves’, according to Nationwide Building Society's analysis of its members' financial habits.
A Censuswide survey of more than 2,000 people commissioned by Nationwide in April, found around two-thirds (67%) are worried about the state of their personal finances and ability to cover essential costs. This is up on March, when the figure was 63 per cent, but still down from 70 per cent in February.
The total value of essential spending rose by 11 per cent year on year in March - close to double the growth of non-essential spending (6%), the society said. The report analysed millions of debit card, credit card and Direct Debit transactions made by Nationwide members.
Within the non-essential spending category, the total value of spending on subscriptions fell by three per cent annually, in signs of households looking to cut back. There were also some signs of cutbacks being made to longer-term essentials in order to pay for the ‘here and now’.
Mark Nalder, payments strategy and performance director at Nationwide Building Society, said: "With inflation remaining high and the rising cost of living, it's perhaps unsurprising to see an increase in the number of people concerned about their finances and ability to cover the essential costs. As our data shows, high essential costs are impacting how the nation spends its spare money.”
If you are in work, but on a low income, facing redundancy, living with a long-term health condition or disability, raising a family or recently bereaved, you could be due extra financial support from the Department for Work and Pensions (DWP) or your local council.
Now is the ideal time to set some time aside to use one of the online benefit calculators listed at the end of this article to check if you should make a claim for a benefit, payment or discount. A recent report from the think-tank Policy in Practice, estimates that a staggering £19billion is being left unclaimed by millions of households each year across Great Britain.
Who should check for unclaimed benefits or discounts?
There is a wide range of benefits and payments available you should check for.
You should check if:
- you are temporarily unable to work, including because of ill health
- you are of working age on a low income
- you’re over State Pension age on a low income
- you have been made redundant
- you are looking for work
- you are raising a family
- you have a child who is disabled or has a health condition
- you are disabled or have a health condition
- you’re caring for someone
- you have lost a loved one
How to check eligibility for benefits or payments
The quickest way to check is to use an online confidential benefits calculator - there’s even one that checks eligibility for devolved benefits. Below is everything you need to know about benefits calculators including what they check for and how to use them.
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 Scottish Child Payment and Adult Disability 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 latest money news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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