More than one in four adults have reported either not coping financially or finding it difficult to cope according to the Financial Conduct Authority’s latest “Financial Lives” survey

14 percent felt heavily burdened by their domestic bills, and more than one in three mortgage holders had seen their payments increase while 62 percent of renters said they had rent increases in the past 12 months.

In the 12 months to January 2024, 2.7m adults sought help from a lender, a debt adviser or other financial support charity because they found themselves in financial difficulty. Nearly half of those that sought help said they were in a better position as a result.

However, 2 in 5 adults who had fallen behind on their bills said they had avoided talking to their lender about their finances.

The figure is still higher than 5.8 million in February 2020, before the beginning of Britain’s cost of living crisis, which was fuelled by high inflation and energy prices.
Renters, single adults with children and the unemployed were among the hardest hit, as well as those living in the North of England and in the most deprived areas of Britain, the impact hitting some people’s mental health, the FCA said.
This squeeze prompted the financial watchdog to require banks to offer customers payment holidays and other help.
“Our research shows many people are still struggling with their bills, though it is encouraging to see some benefitting from the help that’s available,” said Sheldon Mills, FCA executive director of consumers and competition.

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