One-fifth of Britons say they are being forced to borrow more money to meet their payments, with half unable to save at all, in a sign that households are feeling the pain of the cost of living crisis.
UK inflation is rising at a near 40-year record pace while lenders are raising their mortgage rates after the announcement of the government’s “mini” Budget pushed up expectations of further monetary tightening by the Bank of England.
The stress this is putting on households is now clearly visible with fresh data showing that the proportion that are in financial difficulty is increasing, with spending falling and consumer confidence at a record low.
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