As per a new study tracking the effects of the cost-of-living crisis, more than 2.5 million households in Britain suffer from “high risk” of financial vulnerability or other challenges and need assistance to pay their bills.
The data from the number of households registered under the Vulnerability Registration Service (VRS) alerts companies to financial issues impacting their clients; the data is extrapolated to the entire population of the nation.
The data firms Outra and VRS released the study, stating 2.4 million households are at “high risk,” while 6.3 million needed financial support since they were at an “elevated” risk of vulnerability.
In 2022, the United Kingdom was estimated to have a total of 28 million households.
Compared to the 1950s, Britain is experiencing the biggest squeeze on the standard of living as wage rates fail to keep up with surging inflation, mortgage prices, and higher borrowing costs.
According to company profits and government statistics, most consumers have so far been able to maintain their spending rates, with COVID pandemic-era savings exceeding 2019 levels and the jobless rate approaching its lowest level since 1974.
Nevertheless, official retail figures released last week showed that while volumes were down 0.8% from February 2020, just before the epidemic hit, spending in regards to value in May was 17% more than what was spent in that same month.
Many consumers are resorting to cheaper alternatives to sustain their livelihoods, as per supermarkets.
According to the VRS and Outra surveys, the northeast and northwest of England, where four out of 10 households were deemed to be at high or elevated risk of vulnerability, bore the brunt of the nation’s financial burden.
The purpose of getting households registered under the VRS is to caution landlords, banking institutions, and utilities regarding financial and health challenges faced by a household. Roughly 400,000 households have opted for this service.
Finance Minister Jeremy Hunt had a meeting with regulators on Wednesday regarding ways to prevent profiteering by companies. A new Consumer Duty will come into effect on July 31, protecting consumers under new standards, including these vulnerable populations.
According to a report released last month by the Financial Conduct Authority, a regulator that created the responsibility, there are now 10.9 million more people than in May 2022 who struggle to make their credit card and bill payments. This is an increase of 3.1 million people since May 2022.
- Published By Team Timeswire