· One in five Brits – about 10 million people – have put off making a big financial decision because of uncertainty around Brexit. In London and Scotland, it’s one in four people (25% and 24% respectively)
·More than a third – 18 million – think their finances will get worse after Brexit, rising to nearly half of Londoners and Scots (47% each)
·The housing market has taken a hit with 3.2 million British adults saying they have put off deciding to buy a home because of Brexit. Holiday plans have also taken a big hit: 3.6 million have delayed booking a holiday
·Royal London is urging people to get their finances “Brexit ready” in the next month, with its “six point action plan” (see notes to editors).
With one month until the October 31 Brexit deadline, ten million people say they have put off a big financial decision because of Brexit, with the number rising by 3 percentage points from 16 per cent to 19 per cent of the British population in the last quarter, according to the survey by YouGov on behalf of Royal London, the mutual insurer.
Overall, 36 per cent of Brits – around 18 million people (as calculated by Royal London using ONS figures) - think their personal finances will get worse once the UK leaves the EU in less than a month’s time, up from 32 per cent in November 2018.
The latest quarterly ‘Brexit and personal finances’ survey revealed big regional disparities in both the level of pessimism and the level of caution being taken surrounding big financial decisions around the country.
People in London and Scotland are more likely than those living in the South, Midlands/ Wales or the North, to feel pessimistic about the outlook for their finances after Brexit, with 47 per cent of people in these regions expecting a decline, compared with 36 per cent for Great Britain as a whole.
As a result, more are choosing to try and do something about it, with the proportion of people saying they have made changes to their personal finances ahead of Brexit rising from 8 per cent six months’ ago to 11 per cent now, with a reduction in spending, an increase in savings and a decision not to go on holiday being the most likely courses of action taken by those making preparations.
A rise in the cost of food, a fall in the value of the Pound and a rise in the cost of energy are the chief concerns among those who think their personal finances are set to worsen after the UK departs.
Royal London is urging people to get their finances “Brexit ready” in the next month, with its six-point action plan.
Becky O’Connor, personal finance specialist for Royal London, said:
“Millions of people are rejecting the old adage of ‘keeping calm and carrying on’ and instead opting for caution and waiting for the outcome before moving on with their lives.
“With so much hanging in the balance, it is hard to blame those who choose not to commit a large amount of money to a new purchase. The research shows the lives of the Great British public are literally on hold, with new homes, cars and holidays all delayed.
“As the Government and business ‘Get Brexit Ready’, Royal London is urging people to do the same with their finances, as far as possible.”
Notes to Editors
· The full quarterly ‘Brexit Barometer’ report on the YouGov/ Royal London ‘Brexit and personal finances’ survey can be found here https://www.royallondon.com/brexit-barometer/
· All percentages, unless otherwise stated, are from YouGov Plc. Royal London has calculated the population figures based on these percentages and the ONS’s total population figure.· Total sample size was 1,867 adults. Fieldwork was undertaken between 29 and 30 August 2019. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).
· There are approximately 50 million GB adults aged 18+ (https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/datasets/populationestimatesforukenglandandwalesscotlandandnorthernireland)
·Royal London has published a six-point “Get your finances Brexit ready” plan, which can be found here https://www.royallondon.com/media/in-brief/six-point-brexit-action-plan-for-your-finances/
·There are approximately 50 million GB adults aged 18+ (https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/datasets/populationestimatesforukenglandandwalesscotlandandnorthernireland)
·Royal London has published a six-point “Brexit action plan” for your finances, which can be found here https://www.royallondon.com/media/in-brief/six-point-brexit-action-plan-for-your-finances/
‘All percentages, unless otherwise stated….. Royal London has calculated the population figures based on these percentages and the ONS’s total population figure.’
About Royal London:
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £139 billion, 8.6 million policies in force and 4,348 employees. Figures quoted are as at 30 June 2020.