UK Households Struggle to Make Ends Meet
The Bank of England has announced inflation in May stayed put at 4.5 percent, however many UK households are already at breaking point with their finances.
The recent announcement of another rise in energy prices set for August will be a problem for households who are already struggling to make ends meet.
According to Moneysupermarket a quarter of UK consumers are struggling to stay afloat due to the high cost of living.
“The sharp sting of high inflation is not new to UK households, as consumers have battled with the rising cost of living over the last 12 months,” said Kevin Mountford, Moneysupermarket head of banking.
“Many workers also have to deal with pay freezes, meaning their incomes are actually dropping in real terms, it is no surprise many feel like their finances are either at, or rapidly approaching breaking point.”
Weekly outgoings for the average Brit rose by £54 over the past six months, their research reveals.
For 22 percent, they will be unable to cope should their monthly expenditure rise any further.
A further one in five admitted in the survey that bills such as heating were placing the biggest strain on their household finances.
August Energy Price Hike
Scottish Power is one of the energy suppliers who have recently announced a price hike for August. They will raise their gas prices by 19 percent and their electricity rates by 10 percent. This will add £175 on average to the cost of a yearly bill for 2.4 million households.
If your finances are at breaking point and you cannot afford to overspend, a prepaid debit card could help you stay within budget. The card only allows you to spend the amount you loaded onto the card, and unlike credit cards you are not lumped with a bill at the end of the month.