Household finances across the country are weaker than at the same point last year, according to a new survey. More households are ‘struggling’, with income not sufficient to pay bills, and fewer households have income that exceeds bills and debts.

The Legal & General ‘MoneyMood Survey’ interviewed a nationally representative sample of around 1,000 adults.

Key points

• The number of households saying they are ‘struggling’ was over 340,000 higher at the end of July 2012 than in the middle of 2011.
• The number of ‘stable’ households – those saying they have some money left after paying bills each month – has fallen by 600,000.
• For those who say they are struggling, the amount of money they are ‘short’ each month has halved since the beginning of the year as the positive impact of falling retail prices kicks in.
• The figures vary significantly between regions. The number of struggling households has fallen in London, Scotland, the north west and west midlands: but there has been a significant increase in the east midlands, the south (excluding London) and Wales.

Source: Press release 14 August 2012, Legal and General
Link: Legal and General press release