31% of people ‘cutting back on essentials to ease financial pressures’

Two-thirds (66%) of people are concerned about their finances over the coming months and three in 10 (31%) have been cutting back on essentials such as food and heating, a survey has found.

Nearly two-fifths (38%) said their finances have worsened since this time last year, according to the research carried out for TSB and Lightning Reach, a portal that connects people with financial support grants to which they might be entitled.

A quarter (25%) of people have used savings to cover everyday costs and one in six (16%) have borrowed from family or friends.

More than half (51%) of people said they had debt, and 42% of these people said their debt had increased.

About 12% of people said their debt was becoming difficult to manage and 6% had fallen behind on payments.

To alleviate financial pressure, more than a third (34%) of people said they had shopped around for better deals on essentials.

But a quarter (25%) said they would not feel comfortable requesting financial support, even if their finances required it.

The conflict in the Middle East has prompted prices to rise and mortgage rates to increase, putting further pressure on households’ costs.

Ren Yi Hooi, founder and chief executive of Lightning Reach, said: “There’s much more support out there than people realise.”

Keely Newman, head of vulnerable customers, TSB, said: “If you find yourself in need of support, we’d encourage households to check their eligibility for a grant, and contact your bank or a charity for advice and debt management.”

Vikki Brownridge, chief executive at StepChange Debt Charity, said: “Uncertainty around household finances is rising, adding to several years of cost-of-living pressures that haven’t gone away.

“Early intervention can make a real difference for people struggling with debt, and it’s vital that people know where to access support. In fact, 85% of StepChange clients say they would have sought help sooner if they could go back in time.

“For anyone struggling with debt, it’s important to speak to your creditors, who can offer tailored support and guidance. Free, impartial, and non-judgmental debt advice is also always available from charities like StepChange.”

Censuswide surveyed 2,000 people across the UK in April.