22 million British adults saw their finances deteriorate in the three months to September despite signs financial resilience is stabilising, according to new research from LV=.
Findings from the Wealth and Wellbeing Research Programme, a survey of 4,000 UK adults, shows that rising supermarket costs and other bills are preventing people from saving for the future.
The research found that four in 10 people continue to report feeling worried about increased food and utility costs.
In addition, less than half (49%) of the working age population are comfortably able to afford to pay their bills, and almost three quarters (72%) of 18 to 34-year-olds currently hold non-mortgage debt.
Over a quarter (27%) of parents are intending to spend less on Christmas this year, as continuing financial pressure force families to make difficult choices.
By contrast, two-thirds of retirees report being able to comfortably afford their living costs.
LV’s Wellness Tracker, which measures financial resilience by comparing the number of people who are financially comfortable with those who are struggling, has only improved slightly from an all-time low of +15 in December 2022, to +17 in June.
David Hynam, LV= chief executive, said: “Sadly, Christmas is becoming a financially worrying time for many, as increasingly we see people having to cut back on spending to meet the cost of day-to-day essentials.
“We’re cautiously optimistic things are beginning to improve but rebuilding families’ financial resilience could take a very long time.”
