WEEKEND WEB: Millions are financially vulnerable
Financial expert SCOTT WOODS checks out the global markets.
A survey by the Financial Conduct Authority (FCA) suggests that over four million UK consumers are currently in serious financial difficulty, while around half of the population are described as being financially vulnerable.
These findings were revealed in a report outlining results from the FCA’s Financial Lives Survey 2017. The survey is based on views expressed by around 13,000 people, the largest tracking survey the regulator has ever conducted on consumers and their finances.
Specifically, the results suggest that 4.1 million people are already in financial difficulty - this is defined as having failed to pay domestic bills or meet credit commitments in three or more of the last six months.
The survey also reveals a stark generational divide, with 13 per cent of 25-34 year-olds having difficulties paying monthly bills, compared to only 1 per cent of over-65s.
The research also found that exactly half of the UK population displays one or more characteristics of potential financial vulnerability. This situation particularly afflicts the elderly, with 69 per cent of over-75s and 77 per cent of over-85s found to be showing characteristics of financial vulnerability.
• Meanwhile, a report published by researchers from the University of Sussex and Resolution Foundation has warned of the potential financial impact of failing to strike a post-Brexit free trade deal with the EU.
The report suggests that a ‘no deal’ Brexit would raise UK household bills by around £260 a year, which could potentially tip some struggling households over the financial precipice.
Source of information: Intrinsic FS Economic Review
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