In the United Kingdom, nearly eleven million people are struggling to pay their bills and debts, according to official figures released on Wednesday.
According to the regulator Financial Conduct Authority (FCA), there has been a notable increase of 3.1 million people with such problems in January compared to May of last year. At that time, the number was 7.8 million.
“The number of adults who have missed bills or loan repayments in at least three of the past six months has also increased by 1.4 million during the same period, from 4.2 million to 5.6 million,” emphasized a report.
Pressure is mounting
FCA acknowledges the pressure on household budgets due to the rising cost of living and urges individuals to seek help and support. The regulator also emphasizes that the increasing cost of living significantly affects individuals’ mental well-being.
In January, approximately 28.4 million adults in the UK, accounting for about half of the population, reported feeling more anxiety or stress compared to six months earlier, attributing it to the rising cost of living.
Impact
Sheldon Mills, Executive Director of Consumers, confirms the impact of the rising cost of living on people’s financial situation. “Our research highlights the real impact that the rising cost of living has on people’s ability to keep up with their bills, although we are pleased to see that people have gained access to help and advice.”
“We will continue to act swiftly to ensure that financial firms assist their customers who are facing financial difficulties or are concerned that they will be in the near future,” he concludes.
Inflation
In March, the twelve-month consumer price inflation in the UK slightly declined to 10.1 percent, but this marked the seventh consecutive period in which the percentage remained above 10 percent. It has been higher than the Bank of England’s target of 2 percent for nearly two years now.”
