People are feeling more positive about their money situation

People are becoming more confident about their financial situation, research reveals.

Respondents in a July survey by consumer group Which? said they were more positive than before about both their own future household money situation and the future of the UK economy.

And opinions were equal when it came to things getting better or worse over the next 12 months.

Outlook improved this month too (August), with almost half of adults (47%) saying their money situation was ‘good’, and 18% saying it wasn’t.  

Fewer adjustments & missed payments

In the month to 12 July, fewer households had to cut back on essentials, dip into savings, sell possessions, or borrow money to cover costs of utility bills, housing costs, groceries, school supplies and medicine.

The proportion of households making these adjustments fell to 42% – the lowest level seen since December 2021, and the biggest month-to-month drop in the research.

On top of this, there was a drop in households missing a housing, bill, loan, or credit card payment this month – the lowest level in the past three years (since August 2021).

Hope for struggling households

In August, some of the biggest improvements were seen in households with working-age parents, which tend have higher rates of financial difficulty. Previous months found it was mainly people on higher incomes and pensioners whose money situations had become better.

The proportion of working-age parent households who’d missed a household bill fell from 13.2% to 9.9% in the month to 12 July, the lowest in nearly three years.

Labour’s money reforms 

The Which? research shows people started feeling more at ease about their finances the week after the general election.

The winning Labour party have pledged to tackle the cost-of-living crisis and raise living standards across the country through several reforms, including a genuine minimum wage, cheaper energy bills, and more support for school children.

Do you need money help?

Although the research shows pressure on household finances is easing, many people are still struggling.

If you’re finding it hard to cover essentials, we can help get you back on track by creating a realistic budgeting plan, checking your benefits entitlement, and advising you on possible solutions if you’re in debt.

All the advice we give is free. Some of our debt solutions are free too, while others have a fee.

Don’t struggle alone. Get in touch with us online or give us a call.