Increase in families struggling to cope with bills
ABOUT a sixth of households are struggling to make ends meet and fewer families are managing to cover their bills compared with a year ago, a study has found.
The share of households in Britain whose income is not enough to pay their bills has increased from 14 per cent a year ago to 16 per cent by last month, Legal & General’s Money Mood survey found.
However, among these families classed as “struggling”, the typical shortfall each month has halved to £42, compared with an average of £96 in January.
The study found that the proportion of homes seen as “stable”, with money left over after paying their monthly bills, had fallen from 43 per cent a year ago to 40 per cent.
Mark Gregory, Legal & General’s executive director of savings, said: “The continued economic recession appears to be gradually squeezing household income, with more homes struggling to stay out of debt this year.”
Monthly shortfalls have dropped by £1 in Scotland over six months to average £35 by July and in Wales they have declined from £46 to £39 over the same period.
Londoners were found to have the highest shortfalls at £99 on average, which is down £22.
The study suggested that a recent easing seen in inflation had generally helped to drive the typical shortfalls down.
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