Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

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.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
U.S. Tech Stocks Slide on AI Boom Concerns
White House Confirms Talks Over Intel Stake
Trump Suggests U.S. Could Support Ukraine ‘By Air’
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
UK Government Tries to Sue 4chan for Breaching Online Safety Act
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
"Every Centimeter of Your Body Is a Masterpiece": The Shocking Meta Document Revealed
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
Beijing is moving into gold and other assets, diversifying away from the dollar
China Requires Data Centres to Source Majority of AI Chips Locally, For Technological Sovereignty
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
Jellyfish Swarm Triggers Shutdown at Gravelines Nuclear Power Station in Northern France
OpenAI’s ‘PhD-Level’ ChatGPT 5 Stumbles, Struggles to Even Label a Map
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
×