Brits 'struggling financially'

By Sarah Engle, Wed 30 Jul 2008 - Published in Banking

People in the UK are being encouraged to compare money-saving deals as rising inflation makes it harder to cover day-to-day expenses.

A survey by Legal & General has revealed more people are finding their wages do not cover their living costs.

It found the percentage of people able to cover their bills with what they earn has dropped from 59 per cent to 57 per cent since January 2005.

Meanwhile, the percentage of married couples who can pay all their bills out of their salary has dropped from 62 per cent to 53 per cent.

The poll found there had been an eight per cent increase in those people living beyond their means, with 5.3 million people in the UK now relying on savings, loans and credit cards in order to make ends meet.

Director of wealth customer marketing at Legal & General Jonathan Latham said: "As inflation takes its toll, the need for investing becomes even greater as digging into reserves looks inevitable for an increasing number."

Elsewhere, Savills has warned people the property market is unlikely to recover until economic conditions in the country improve.

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