According to the recent Office for National Statistics (ONS) reports, the proportion of people suffering “severe material deprivation” has stayed at 5%.
37% of people do not have enough money to pay for any unexpected financial expenses. This figure has increased from the 27% that was recorded in 2007 (before the recession).
“There have also been smaller increases in recent years in the percentage of people who say they are unable to afford a car, to heat their home adequately or to pay their rent/mortgage, utility bills or loan repayments,” said the report.
“But, in the UK, the percentage of people who say they are unable to afford a television set, telephone or washing machine is negligible.”
Furthermore, these figures highlight the impact that the recession has had on families, with wage and salary rises being outstripped by inflation. According to the November of figures from the ONS, inflation has been higher than the rise in average wage for the past 12 years. The average annual wage for full-time workers has risen by 40% since April 2000 – from £18,848 to £26,500.
In recent years, the trend has accelerated. For example prices have risen by 18% since 2007, whilst annual earnings have gone up by just 10%.
According to the HIS survey, the key indicators of ‘material deprivation’ includes the ability of people to pay:
• rent, mortgage, utility bills or loan repayments
• to keep their home adequately warm
• for unexpected financial expenses
• to eat meat or protein regularly
• to go on holiday for a week once a year
• for a television set
• for a washing machine
• for a car
• for a telephone
If you do find yourself struggling, why not call and speak with one of our advisors on: 0800 085 1825 or 0161 868 2500 (if calling from a mobile).
The Debt Advisor is regulated by The trade organisation The Debt Resolution Forum and are regulated by The Financial Conduct Authority no 60669.