Higher prices for food, petrol, and other everyday goods are leaving households struggling to meet these rising costs according to the latest Household Financial Confidence Tracker from comparethemarket.com.
The research says that as coronavirus restrictions lift, the vaccine roll-out continues and the economy recovers, resulting inflationary pressures are leaving many families with children worried about affording day-to-day necessities,.
Across all groups, 84% of families with children agree that the rising cost of living is pushing up the cost of everyday goods. Nearly a third (33%) are currently struggling to afford the cost of everyday goods – compared to just 17% amongst those without children in the house.
More than a quarter (28%) of families with children at home said they had struggled to pay their bills over the last week. In addition, a quarter of this group (26%) are worried about their ability to meet their financial obligations over the coming weeks, compared to 16% among families without children.
While a third (33%) of families with children anticipate their finances will be in a better position by the end of the year than they are today, 28% believe their finances will be worse off, as longer-term concerns around rising prices dent financial confidence. Of those concerned, almost three-quarters (71%) believe day to day living will get more expensive, 50% expect they will have to spend more and save less and 52% believe the UK economy will be in a weaker position by the end of 2021 which will further hurt their finances.
Ursula Gibbs, Director at comparethemarket.com, said “There is a greater sense of optimism among many that life has returned to some form of ‘normal’, given the vaccine roll out and Freedom Day going ahead. However, that is not yet reflected in all households with children to look after and additional mouths to feed.”
“Worries around affording the cost of everyday living due to rising prices and paying bills are still front of mind, given the wider impact of the pandemic. While many economists expect rising inflation to be short-term, many households will still have to consider how to cope with the fact that petrol, food and clothes are more getting expensive at a time when many people’s finances have taken a big hit over the past 18 months.”
“There are steps people can take to help manage their money day-to-day. Working out where to cut costs by switching household bills may seem like a small and inconsequential step, but it can save hundreds of pounds each year.”