The latest MoneyMood Survey from Legal & General shows a million households are worse off now than they were just one year ago. The insurer’s research shows a marked drop in ‘Expense Cover’, the number of ‘financially stable’ households who say they have some money left over after paying their bills each month. This data indicates that, nationwide, the number of households scrimping to pay bills or sinking into debt has risen by just over a million (1,050,000) compared to 2010.

The company believes that the last three years have clearly taken a toll on the number of ‘stable’ households who can claim expense cover. In September 2007 six out of 10 households across the UK said they had expense cover ‘some money left over after paying bills and debts’. By the end of September that had fallen to less than half of households (45%), a drop of around 3 million in just four years.

Commenting on these findings Mark Gregory, Legal & General Executive Director Savings said; “Right across the country, no matter where they live, people are saying that they’re struggling to cope with household bills. Our latest figures indicate over half of UK households, around 11.5 million homes, are “scrimping” - budgeting on a fine balance between managing to pay bills and sinking into debt.”

Gregory added: “The continuing financial turmoil has created millions of households, for whom just paying bills has become a real struggle. In our last survey (August) over half of households questioned said they were contemplating using some savings to meet mortgage payments if rates go up or considering cashing in some savings to pay rising household bills and high fuel costs.”

The region most affected over the last 12 months is the North West as the table below shows:

Regional Data:

Region


Population (million)


% Total


Households (million)


Worse off in last year


Struggling to cover expenses %


(000’s)

N East


2.6


4.0


0.8


104,000


59%


472

N West


6.9


11.0


2.3


184,000


62%


1,426

Yorks and Humber


5.3


8.5


1.8


Positive 144,000


48%


864

E Midlands


4.5


7.5


1.6


Positive 80,000


52%


832

W Midlands


5.4


9.0


1.8


90,000


59%


1,062

East Anglia


5.8


9.0


2.0


180,000


48%


960

London


7.8


13.0


2.7


27,000


52%


1,404

S East


8.4


14.0


2.9


203,000


55%


1,595

S West


5.2


8.0


1.7


85,000


52%


884

Wales


3.0


5.0


1.0


50,000


57%


574

Scotland


5.2


8.0


1.7


255,000


57%


969

N Ireland


1.8


3.0


0,6


Not audited


Not audited


N/A

Total


60


100


21.0


1,050,000


55%


11,550

Source – Office for National statistics 2010, Legal & General Estimates, MoneyMood survey