Bahama Times

Thursday, Mar 28, 2024

Cost of living crisis is 'top concern' for families as stress over financial distress intensifies

Cost of living crisis is 'top concern' for families as stress over financial distress intensifies

There are some important messages for those worried about the state of their finances as a series of reports warn about the effects the growing cost of living crisis is having on mental health, as well as bank balances.

Households are being urged to get their finances in the best shape possible amid increasing evidence of increased stress over the growing cost of living crisis - now said to be the main concern for people across the UK.

A debt advice charity told Sky News it was helping thousands of new clients navigate problem debt as families grapple rising bills across the board - a situation that is tipped to only accelerate as the year continues.

The Bank of England was particularly gloomy last week when it predicted the economy was now at risk of entering recession.

It saw inflation potentially rising to a 40-year high, above 10% by the year's end, when a further big hike in the energy price cap is expected to be implemented.

Three reports released on Wednesday highlighted growing anxiety, as the government resists demands to splash the cash and provide further financial relief.

The National Institute of Economic and Social Research estimates 1.5 million British households, one in 20 of the total, will soon face bills for food and energy which will exceed their disposable income after housing costs. It also forecasts the UK entering a recession in the second half of the year.

Meanwhile a survey by the consultancy BritainThinks found the cost of living was now the dominant concern for UK households, with 90% worried about the effects of rising prices.

It also suggested that almost half were driving less or using less gas and electricity at home to limit the impact from record wholesale prices - exacerbated by Russia's war in Ukraine.

More than of half those questioned were already buying value ranges.

The report said that 10% of people were already struggling to stay afloat and "very pessimistic" about affording essentials in the months ahead.

A separate study by Shawbrook Bank showed that 18% were already losing sleep over the issue and a quarter said that managing their finances was their leading cause of stress.

Both surveys found more than a third were cutting back on things such as days out and fashion - in line with data from industry groups that non-essential consumer spending is slipping back to take a toll on growth.

What can I do to help myself?


Debt charity StepChange said it was important that families took a good, hard look at their finances rather than just spend less - and, importantly, take action.

"If you're behind on your bills, talk to your creditors - if they don't know you're struggling they won't be able to help.

"You might be able to negotiate a payment plan with your bank, or take advantage of a grant that can pay off some or all of a utility bill," it advised.

The charity also urged those in debt to check they were getting all the help they were entitled to.

Its head of media, Sue Anderson, added: "For some struggling, however, these tips won't be enough to clear mounting debts, and that could be a sign of the need for debt advice.

"Don't worry if this is the case, you're not alone. Many people who come to StepChange struggle alone for months or even years, then tell us they wish they had contacted us sooner."

It spoke up as a third report on the issue warned of the projected effects of the cost of living crisis further down the track.

Work published by Yorkshire Building Society found that the average household could be left around £100 per month short of what they need to cover their spending in two years' time when projected wage increases were compared to those for spending.

Mixed messages


The government, which disappointed business groups and unions on Tuesday when it failed to announce immediate new measures to help working families in the Queen's speech, has signalled that more financial assistance is imminent.

The PM told MPs in the Commons: "We will continue to use all our ingenuity and compassion for as long as it takes.

"My Right Honourable friend the Chancellor (Rishi Sunak) and I will be saying more about this in the days to come."

It is not clear what form the aid will take but the Treasury has made it clear there are no plans for an emergency budget.

Newsletter

Related Articles

Bahama Times
0:00
0:00
Close
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Israel: Unprecedented Civil Disobedience Looms as IDF Reservists Protest Judiciary Reform
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Italian Court's Controversial Ruling on Sexual Harassment Ignites Uproar
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
BBC Personalities Rebuke Accusations Amidst Scandal Involving Teen Exploitation
A Swift Disappointment: Why Is Taylor Swift Bypassing Canada on Her Global Tour?
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
Unilever Plummets in a $2.5 Billion Free Fall, to begin with: A Reckoning for Misuse of Corporate Power Against National Interest
Beyond the Blame Game: The Need for Nuanced Perspectives on America's Complex Reality
Twitter Targets Meta: A Tangle of Trade Secrets and Copycat Culture
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
×