Five questions answered on a new survey about the UK’s finances
The Money Advice Service has released the results of its latest survey into people’s finances. We answer five questions on the survey’s results.
So, what’s the overall picture of people’s finances in the UK?
Not so great. According to the survey 52 per cent of UK adults said they are struggling to keep up with bills and debt repayments. Unsurprisingly, this is up compared to 35 per cent in a similar study in 2006.
In Northern Ireland people are struggling even more, some 66 per cent saying they were struggling.
How many people did the survey involve?
The Money Advice Service, which is a government backed website, surveyed 5000 people and followed 72 families over the course of a year to see how they managed their money.
They intend to repeat the survey quarterly, surveying a total of 10,000 people, to get a better picture of the nation’s finances.
What else did the survey reveal?
Those finding it hardest were in the North West area of the country, with 60 per cent of people saying they find it tough to make their money last to the next pay day.
Twenty-one per cent of people said they had experienced a large drop in income, while 42 per cent said they would have to have a think about how to pay for an unexpected bill of £300.
It also revealed that although most people are keeping a tight track on their finances, some have no idea how much money is in their bank account. Of those asked, 84 per cent they kept a track on their money, while 16 per cent were unable to identify the balance on a bank statement.
What have the Money Advice Service said about the results of the survey?
“In theory, money management is easy - spend less than you earn and consider your future. But the difficulty comes when applying this in the real world," said Caroline Rookes, chief executive of the Money Advice Service.
"This report reveals just how difficult it is at the moment for so many of us, but also highlights ways we are adapting to manage financially."
What has the treasury said about the survey’s findings?
A spokesman for the UK Treasury, speaking to the BBC, said: "We recognise that times are still tough for families, but Britain is holding its nerve, we are sticking to our plan and the British economy is on the mend.
"This report shows that, despite these tough times, managing your everyday finances effectively can really help to make things a little easier, which is why the government continues to support efforts to boost people's financial skills."