Household finances (how)

Summary

• The most common issue experienced by those who report a negative impact is reduced income (51%)
• The next most popular negative impact is 21 percentage points lower: use of savings to cover living costs (30%), which is closely followed by being unable to save as usual (29%) and struggling to pay living costs (29%)

Ways household income being affected chart: This chart shows that of those who have experienced a negative impact on their household finances
51% of respondents report a reduced income
30% of respondents report using their savings to cover living costs
29% of respondents report not being able to save as usual
29% of respondents report that they are struggling to pay living costs
27% of respondents report that they are struggling to pay bills
24% of respondents report that they have had to borrow money and or use credit
24% of respondents say that the value of their savings has been affected by economic instability
22% of respondents say that the value of their pension has been affected by economic instability
15% of respondents report that they are providing financial support to friends and family
11% of respondents report having no income
6% of respondents say that care costs have increased
16% of respondents say that their household finances have been affected in other ways

Effects on household finances – total sample

Base: Those experiencing a negative impact on their household finances: 300

Key differences by demographic

Sex

Females are more likely to have reduced income, have used their savings to cover living costs and been unable to save as usual compared to males.

More males than females are concerned about their pension value being affected by economic instability, and more males report having to borrow money or use credit.

Age

25-34 year olds report reduced income in higher numbers than any other age group. This is in contrast to W2 where 35-44 year olds reported the most reduced income.

More residents in older age groups have had their savings or pension values impacted by economic instability.

Disability

Residents who have a disability are more likely to say they are struggling to pay living costs and bills whilst more of those without a disability have been unable to save as usual.

Household income

Households with lower household incomes are struggling to pay living costs and bills whilst those in higher income brackets are more concerned with reduced income (this is consistent with W2) and the impact of economic instability on their pension and saving value.

Summary

• A majority of residents say they have been impacted by an increased cost of food and fuel (62% and 57% respectively)
• Smaller proportions report other impacts, such as changes to universal credit (5%), increased utility bills (4%), and a general increase in the cost of living (2%)

Other impacts on household finances chart:This chart shows that when saying whether anything else has impacted their household income
62% of respondents mention the increased cost of food
57% of respondents mention the increased cost of fuel
5% of respondents mention changes to universal credit
4% of respondents mention increased utility bills
2% of respondents mention a general increase in the cost of living
9% of respondents mention other things

Is there anything else that has impacted your household finances? (Other influences) – total sample

Base (total sample): 773

Other comments table:This table shows that of those respondents who made other comments
49% of respondents mention Increased spending on bills (utility bills, council tax)
26% of respondents mention Reduced or lost income (redundancy, self-isolating and missing work, loss of business, supporting others)
9% of respondents mention Increase in other expenditure (such as for medication and private healthcare, pets, having more children, relying on deliveries rather than shopping in person)
8% of respondents mention a Positive impact: more savings (not spending on travel, spending less on social events)
9% of respondents make other comments relating to car parking, family support, Brexit and movement of pension age

Is there anything else that has impacted your household finances? (Other influences) – ‘Other’ comments – Table

Base: 136