19 June 2017

Households must put plan in place to deal with cost of living squeeze – Royal London

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Helen Morrissey, Personal Finance Specialist

Helen Morrissey

Corporate PR Specialist – Long Term Savings

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Commenting on the latest Markit Household Finance Index figures, Helen Morrissey, personal finance specialist at Royal London said:

The latest Markit Household Finance Index figures show a continued sharp squeeze on financial wellbeing as higher living costs continue to bite. Such conditions show little signs of abating with households anticipating a continued sharp rise in the cost of living over the coming 12 months. A major concern is that if a larger proportion of people’s pay packets are being used to fund day-to-day costs we will see a sustained decline in the household savings rate as people put less aside, or else have to dip into their savings to fund day-to-day living costs. This will leave people more exposed to financial shocks such as redundancy or long term sickness.

“Those living in rented accommodation are particularly vulnerable. Our Renters at Risk report identified there were 7.7m working adults in rented accommodation in 2013/14. While many of these people believe the State would cover their rent if they were to lose their income the reality is somewhat different. The report found that nearly three quarters of all working renters are at risk of either not qualifying for housing benefit at all, or else the benefit would only cover part of their rent. It is important that people in this situation put a plan in place for how their rent will be paid should they lose their job or are off work long term due to sickness.

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For further information please contact:

Helen Morrissey, Corporate PR Specialist – Long Term Savings

Notes to editors:

  1. Royal London’s policy paper Renters at Risk is available here.

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.