30% of Brits 'poorer than in July'
25th August 2010
Pay freezes, job losses and a sharp rise in the price of household goods during August left almost a third of the population, many of whom lack income protection cover, feeling significantly poorer than this time last month, research has shown.
Some 30% of people told a survey by Markit and YouGov that their finances had deteriorated during the past month. Just 6% said their outlook had improved.
A separate report by Asda found that disposable income had fallen by 2.5%, or £5 a week, during the past year, leaving the average family with a £175 surplus, compared to £180 this time 12 months ago.
Asda blamed the slippage on a failure by employers to keep pay rises in line with inflation. Government figures show that earnings increased at an annual rate of 1.6% in the three months to June 30. Inflation, meanwhile, was running at 3.1% during July.
With hikes in gas and electricity prices coming in the near future, consumers are likely to be hammered even harder before the outlook improves.
Expected job cuts in the public sector will also exacerbate the problem, although some people have taken to purchasing income protection cover as a means of safeguarding themselves should they be made redundant.
Copyright © Press Association 2010
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