Number of Britons with ZERO spare cash at the end of the month surges

The percentage of people with no extra cash at the end of each month almost doubled between 2022 and 2023, according to findings from Nationwide Building Society.

The percentage of households with no cash left at the end of the month rose from 11 percent in 2022 to 21 percent in 2023.

More than one in five, or 22 per cent, of households have less than £100 in savings at the end of the month, compared to just 13 per cent in 2021, Nationwide said.

Bill nightmare: Rising food, fuel and energy prices hit Britons hard

Bill nightmare: Rising food, fuel and energy prices hit Britons hard

The data shows that average monthly household energy bills rose by 63 percent between 2021 and 2023, while monthly food and car fuel costs also rose by more than 30 percent.

Since 2021, average monthly mortgage repayments have increased by 22 percent, while average monthly rental costs have increased by 26 percent, according to the research.

Saddled with sky-high living costs, 69 percent of households are more concerned about their finances and ability to cope with the ever-rising costs.

Nationwide said the average amount of spendable cash left at the end of each month fell on average from £328 in 2021 to £295 in 2022 and £237 at the end of 2023.

Average monthly energy bills came in at £126 in 2021, but rose to around £205 a month last year, according to the findings.

Rising: The rising cost of energy bills has hit households hard, Nationwide said

Rising: The rising cost of energy bills has hit households hard, Nationwide said

Meanwhile, average monthly car fuel costs are around 39 per cent higher than in 2021, reaching £121 per month in 2023.

Rising food prices became a major problem in 2023, with food price inflation peaking at over 19 percent in March 2023.

Average monthly food bills were £191 in 2021, £213 in 2022 and £253 last year, representing a 32 per cent increase over the period, Nationwide said.

Many supermarkets, such as Sainsbury’s, Tesco and the Co-op, have beefed up their in-store ‘loyalty pricing’, meaning that only customers signed up to the chain’s membership scheme get certain lower prices on offer.

Last year the consumer group Which? claims that Tesco and Sainsbury’s are using ‘potentially dodgy tactics’ on some of their loyalty offers to shoppers. Tesco and Sainsbury’s have denied the claims.

Mortgage rates increased significantly in 2023, before slowly starting to decline in the last quarter. Nationwide said average monthly mortgage repayments were £722 in 2021, £774 in 2022 and £880 last year, an increase of 22 per cent over the period.

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In 2021, the average monthly rental cost stood at £693, before rising to £752 in 2022. In 2023, tenants faced a monthly rental charge of £869, representing a 26 per cent increase on 2021 levels.

Mandy Beech, director of retail services at Nationwide, said: ‘Despite the rate of inflation easing, many households are still feeling the pressure as costs remain historically high.

‘Families have been particularly hard hit, with little savings at the end of the month.’

However, there are some signs of increased optimism among households.

Two-thirds, or 67 percent, of respondents said they have adapted either fairly well or very well to the cost-of-living crisis, and more than 50 percent said that while things are tight, they are managing to meet their financial obligations. .

The data is based on a survey of 2,000 people.

If you’re struggling to keep up with monthly costs, it may be worth giving your bank or building society a ring to see how they can support you.

With many struggling with high costs, all eyes will be on the Bank of England’s Monetary Policy Committee on Thursday as it holds its latest vote on interest rates.

Last month, by a majority of six to three, the Bank’s MPC left interest rates unchanged at 5.25 per cent for the third consecutive time.

Public expectations for inflation for the 12 months ahead fell to 3.9 percent in November and to 3.5 percent in December, down from 4.2 percent in October, a survey by US bank Citi and market research company YouGov showed this week.

Retail inflation in January fell to the lowest level in almost a year as the price of tea and milk fell and retailers offered deep discounts to lure customers, new data published on Tuesday revealed.

Shop prices fell to 2.9 percent higher than a year ago, down from 4.3 percent in December, according to the British Retail Consortium-NielsenIQ Shop Price Index. This is the lowest since May 2022.

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