Record levels reached for rents

Over the past year getting a mortgage has remained difficult for the many non-homeowners who are desperate to get onto the property ladder. This has led to an increasing number of people that may normally have opted for a mortgage to buy their own place having no other option but to rent. The demand for rental homes has rocketed as a result of this, which has pushed up rental costs.

It has now been revealed that rents are at their highest level since they last reached record highs back in November of last year. The average rent being paid has now soared to £692 per month, reflecting an increase of 0.8 percent compared to the previous month and a rise of 4.4 percent compared to the same period last year.

The landlords of private rented properties are, on average, raking in around £30 per tenant more each month as a result of these increases. Whilst the rent increases are good news for landlords, as they have a huge demand for their properties, it is not so good for tenants who are already struggling financially and do not have to option in many cases of being able to invest in their own property because of the financial restrictions in the mortgage market.

There are concerns amongst landlords about increased levels of arrears and missed or late payments recently. One official said: “The final bank holiday of the month delayed many rental payments, but on top of this, thousands of tenants took advantage of the opportunity and booked holidays, which has impacted on the timely payment of rent. Nevertheless, despite the short-term factors, landlords need to remain especially vigilant over the medium-term. We are yet to see the true picture emerge from public sector spending cuts, and changing employment situations will hamper many tenants’ ability to meet their monthly rent cheque on time.”

Tags: Record levels, Renting, mortgage, landlord, opportunity, result

Consumers should seize opportunity to overpay their mortgages

Industry officials are urging consumers to seize the opportunity to overpay on their mortgages whilst the base rate remains at its all time low of just 0.5 percent. This is the lowest level the base rate has ever been in the history of the Bank of England, which spans over three centuries, and has been at this level for nearly two years.

However, there are now fears that the base will have to increase at some point in the near future, which will result in repayment for those with variable rate mortgages increased again. Over the past two years these homeowners have seen their monthly repayments plummet, leaving them with more disposable income each month and reducing the risk of repossession for non-payment of mortgage.

However, by overpaying their mortgages whilst they have spare money consumers can significantly reduce the term of the mortgage loan as well as the amount that they end up paying in interest. Officials are now telling consumers to consider making these overpayments whilst they still can before the interest rate increases again. Many homeowners have already been making overpayments since the base interest rate fell, and officials have said that the low interest rates combined with the uncertain future facing many people means that it would be sensible to overpay on the mortgage at this stage.

One official said: “Whilst homeowners may be enjoying the chance to spend some extra money from the savings that they are making on repayments the money would be far better spend on paying off as much of their mortgage debt as possible. Those that have been making overpayment since the base rate fell will save a fortune on the interest that they pay and will find that the mortgage is paid off much, much earlier than had been originally planned.”

Tags: centuries, rates, payment, mortgage debt, risk, spare money

Consumers fleeced over bill payment methods

Many people these days are keen to try and reduce their outgoings, and in the current financial climate with so many people struggling financially making cutbacks has become vital for some people. One of the ways in which many people try and cut back is through reducing their bills by doing thing such as switching providers, which can help to make significant savings.

However, one way in which many consumers are wasting millions of pounds a year between them on their bills is via their payment methods. Many people fail to realise that companies these days often charge a small fortune based on how the consumer pays their bills, and that by making a simple change to their bill payment methods they could make a significant saving.

Companies such as energy suppliers, home phone providers, and broadband providers often make additional charges to those that do not pay by direct debit. Most consumers have a number of choices when it comes to making payments on bills, such as direct debit, standing order, cheque, or in person at banks and post offices.

For those that do not pay by standing orders some companies such as broadband and utility providers apply an addition monthly or quarterly charge, which can really bump up the cost of services for the customer. For example, Virgin Media, which provides phone, television, and broadband services, will charge consumers an extra five pounds a month for failing to pay by direct debit, which equates to £60 a year. In addition to this the company charges extra when customers ask for paper bills to be sent to them.

In order to save more money on their bills consumers should set up direct debits wherever possible, as otherwise they can end up being charged a small fortune on the cost of their bills. There is also another benefit to setting up a direct debit for a bill payment, and this is because it can reduce the chance s of making a missed or late payment, which can also incur charges when the payment is on something such as a credit card or loan. These missed or late payments can also result in the consumer’s credit rating being affected, which can make it more difficult to get finance in the future and makes it more expensive to get credit due to higher interest rates charged.

Tags: way, payment, Standing order, finance, debit, loan, Payment systems, Direct debit

Demand for cheque alternative from pensioner group

It was announced last year that the banking industry is looking to do away with the cheque, which has been a method of payment for millions of older people for many years before debit and credit cards came along. Many pensioners and older people still rely on cheques to make payments for various services and purchases, and the announcement that the cheque was to be phased out caused concern that many of these people would be left without a viable alternative.

The banking industry has said that it is planning to phase out cheques by around 2018, but many officials have said that this could impact on pensioners negatively, causing them stress and difficulties. A pensioner group is now calling for an effective and suitable paper alternative to cheques to be offered so that those that cannot use the Internet to make payments will still have a viable choice.

The group that is lobbying for the paper alternative to the cheque is the National Pensioners Convention, and its protest to find an alternative comes shortly after the BCC revealed that more than 75 percent of pensioners were against cheques being phased out. The NPC is now calling for a guaranteed paper alternative to be offered to older people in place of cheques.

An official from the NAC said: “If cheques are taken away from older people it will create an enormous stressful situation for them, because their bills are paid on time, with a cheque, in an envelope and put in the post. We have told the authorities that what is going to be required is a paper trail to replace the cheques.”

A spokesperson for the Wandsworth Older Peoples Forum added: “A lot of people who are housebound use cheques daily, and a lot of people who have no computer and therefore can’t get onto the internet or do internet banking would be lost without it.”

Tags: finance, concern, enormous stressful situation, pensioner, time, payment, cheque, Social Issues

Banks leaving many high and dry by taking money from their accounts

A number of banks have been accused of taking money from consumers’ accounts by stealth, with officials stating that this practice is leaving many people high and dry, with no cash left with which to make essential payments such as pay bills, rent, and mortgage. Read more

Tags: british bankers association, climate, advice bureau, cash, Business Finance, payment, banks, Citizen Advice Bureau

Competition Commission plans to look into PPI

PPI, which stands for Payment Protection Insurance, is a type of cover that is often sold with loans, credit cards, and other forms of credit. The purpose of the cover is to make repayments on the debt for a certain period of time if the policyholder cannot work and earn money due to illness, accident, or redundancy. The cover is often costly, but can prove valuable to those that can use it, as it offers peace of mind. However, it has been found that the cover has often been sold to those that can never claim on it, such as retired people and those that are self employed. Read more

Tags: cap, rocket record deposits, direct advertising, U.S. Producer Price Index, payment, advertising, payment protection insurance

Insurance firms could face huge losses

According to a recent report the insurance industry could be facing huge losses as a result of the global credit crunch, with tighter household finances forcing many consumers to either downgrade or cancel their insurance cover in order to make ends meet each month. A survey was carried out by officials at Deloitte, and showed that around one if every four consumers were planning to either cut or cancel insurance cover in order to save money at what has become a very financially turbulent time. Read more

Tags: poll, housing, savings insurance, payment, global credit crunch, Insurance, party, level

Consumers favour cards over cheques

The use of cheques by consumers is being increasingly shunned due to the popularity of debit and credit cards, one financial expert has claimed.

According to the Association of Payment Clearing Services (APACS), while cheques are still popular for use with certain payments, such as paying the window cleaner and as birthday presents, cards are the most popular with increasing numbers of consumers using them every year.

A spokesperson for APACS (female), said: “Part of it is a generational thing. Many of the older generation continue to use cheques and are very used to them.”

She added that “the younger generation, particularly those under 20, probably don’t even bother carrying a cheque book around with them”.

Meanwhile, findings from the APACS, there were over 4.4 million business and personal cheques issued each day in 2007, compared with 11 million in the peak year for cheque volumes, 1990.

The body predicts that by 2016 there will be only 2.3 million cheques per day.

Tags: payment, personal cheques, debit and credit, book, favour, business, older generation

Kids earn millions from odd jobs

Odd jobs done by kids are making them a staggering £700 million a year, new figures claim.

Chores, errands and favours are proving a boom area for young people, with one in four 11 to 18-year-olds benefiting from payment for helping out.

The survey has been carried out by Abbey Banking, and while it was found that more girls are in on the act than boys (30 per cent compared to 24 per cent), boys are making more out of it on average.

As in the wider world of work, boys seem to be at a distinct advantage, earning £55 per month compared to girls’ £38.

Head of Abbey Banking Steve Shore said: “The research shows that British kids are making the most of earning opportunities like New Year’s Eve and as a result, the ‘odd job’ economy is thriving.

“As well as giving kids a boost to their pocket money, this is a great way for parents to show their children the value of money and teach valuable financial lessons.”

Babysitting was by a long stretch the most common form of paid work, with car washing in a distant second place.

Tags: car, jobs for kids, payment, New Year's Day, Grupo Santander

Payment Protection Insurance Cover

Anyone that takes out finance likes to have the peace of mind that they are protected against situations that could render them unable to make repayments, and payment protection insurance cover is an effective way to do this. Read more

Tags: Insurance, ppi, accident, credit, Loans, cards, payment, interest

Competition Commission still investigating PPI

The controversy over payment protection insurance has been going on for some time now, and regulators have been investigating the problems surrounding the sale of PPI after it was found that many consumers were being mis-sold this insurance, and that in some cases the cost of PPI was higher than the interest costs on a loan.

The Competition Commission has stated that its investigation into PPI is still ongoing as no conclusions have yet been reached.

The Competition Commission has stated that the issues that are being considered are complex and therefore more time and consideration is required. The Competition Commission plans to publish its provisional findings in May of next year. The chairman of the inquiry stated that the Competition Commission had already reviewed a substantial amount of evidence, but added that there were areas that needed to be looked into further.

The chairman stated: “We are far from making up our minds. But we are focussing on the amount of competition for PPI that distributors face at the retail level.”

He added that the Competition Commission was aiming to complete the inquiry as soon as possible but had to take into consideration areas that needed to be looked at further. He said: “…we are also conscious that the issues we are deciding upon are by no means simple and it is vital that we carry out our work thoroughly, ensuring that all parties receive a fair hearing.”

A number of issues relating to PPI are being looked into by the Competition Commission. This form of cover is designed to protect against falling behind on repayments on loans, credit cards, and other forms of finance.

Alan Wright
13th November 2007

Tags: Mortgages, cards, protection, competition, payment, commission, Loans

FSA to publish new PPI guidelines

The UK’s financial regulator, the Financial Services Authority, is to publish new guidelines in relation to Payment Protection Insurance on its website next year.

Payment Protection Insurance, or PPI, has been at the centre of controversy over the past year, with many claims that this type of insurance was being forced onto borrowers, mis-sold, and in some cases added onto finance deals without the consumers even knowing about it. Banks and lenders make a lot of profit on the sale of PPI, but in many cases customers end up with expensive policies that they cannot even benefit from.

Payment Protection Insurance is designed to help those taking out finance, such as credit cards, loans, and other forms of credit. The idea behind the cover is that consumers will be covered for a specified period in the event that they are unable to work and therefore make repayments due to redundancy, illness, or accidents. However, research was carried out by various agencies, and the industry came under severe criticism for the inappropriate sale of policies amongst other things.

Many people have ended up purchasing PPI that is not suited to their needs as a result of this mis-selling, and the FSA aims to steer customers towards suitable plans based on their needs via the website. Customers will be asked a number of questions on the site, and will then be able to view a choice of suitable policies so that they do not end up purchasing inappropriate PPI.

In addition to helping consumers to find the right PPI policies for their needs, the FSA has also promised that it will be taking far more stringent action and imposing far higher fines on companies that are found to be mis-selling Payment Protection Insurance in the future.

Tom Smith
4th November 2007

Tags: Loans, ppi, Insurance, fsa, cards, payment

UK’s south east is credit card central

The south east of Britain has been found to have the greatest number of credit card holders per capita than any other region.

A recent survey by the UK payments association, APACS, has revealed the payment habits of people and how they vary from region to region.

Results revealed that 75 per cent of adults in the south east have credit cards compared with the national total of 67 per cent.

Furthermore, it found, people in the north east are less likely to regularly use cheques than anywhere else while in the North West, people make more regular visits to cash machines, withdrawing £5,355 more than anywhere else in the UK.

Sandra Quinn, director of communications at APACS, said: “Different parts of Britain have long been associated with certain payment stereotypes – whether those are about being overly careful with spending or flash with the cash – and these guides – drawn from the UK’s ongoing largest study of payments behaviour – offer a revealing and interesting look behind the statistics.”

She added that although the majority of people are happy with the payment methods available, managing finances can be made easier and more convenient by “taking advantage” of the various options.

The regional comparisons were based on a survey of 4046 adults representing the most comprehensive ongoing survey of its kind.

Tags: managing finances, region, UK payments association, finances, payment, Standing order, Association, director

Nationwide stops PPI sales

The largest building society in Britain, the Nationwide, has stopped sales of Payment Protection Insurance with its financial products, after admitting that customers were not being properly advised with regards to PPI by staff members.

Payment Protection Insurance has been at the centre of controversy for some months after it was found that customers were being pushed into purchasing this non-compulsory cover, and that the cover was often being mis-sold inappropriately so that customers ended up purchasing a costly policy that they would never be able to benefit from.

The Financial Services Authority has been running a long term investigation into the sales of Payment Protection Insurance for two years, and is in the final phase of its review and investigation. The cover is designed to assist those that cannot keep up with repayments on their financial commitments due to accidents, illness, or redundancy, and is sold with products such as credit cards, loans, and other financial products that may need protection.

However, the review revealed that in many cases sales staff were mis-selling this policies, making the customer think that they cover was compulsory, and in some cases even adding PPI without the customers’ knowledge. This has led to a real crackdown on the sales of PPI after many people ended up purchasing policies that they were either not eligible to claim benefits on or that they were not even aware that they had purchased.

A Nationwide spokesman stated that the halt in sales of PPI is a temporary one, adding: ‘We did some mystery shopping and weren’t satisfied the sales processes were as robust as they should be, so they have been halted temporarily.’

Tom Smith
27th September 2007

Tags: Insurance, fsa, payment, benefit, policy, protection, cost, cover, ppi

FSA forces change on online PPI sales

The Financial Services Authority (FSA) has announced that customers are to receive protection over how they are sold payment protection insurance (PPI) over the internet.

Some online insurance providers were adjudged to have been railroading customers into taking out PPI along with their loan purchase, using techniques such as a pre-ticked box committing them to the cover at point of purchase.

While PPI might prove a safety net against consumer debt, the FSA’s concern was with customers’ being offered an optional service, which costs extra money, as the ‘default’ choice.

Vernon Everitt, a director at the FSA, said: “Naturally, many customers are focussed on getting the loan itself, but it is just as important that they also think about whether or not they want to protect their loan repayments by taking out PPI cover.

“This change means that it will be up to the customer to actively choose to buy PPI rather than it being sold automatically.”

PPI provides insurance for customers taking out credit cards, loans and mortgages, which covers monthly payments should the customer be unable to work at one point of the repayment schedule.

Tags: hsbc, choice, payment, internet, finance, repayment schedule, Loans, director

Plastic card spending grows

The amount of money we spend on debit and credit cards has increased three-fold in the last ten years, reaching record levels.

Figures from the UK payments association Apacs show that we spent a combined total of £321 billion on plastic cards in 2006.

That compares to the £87 billion that was spent in the same way back in 1996 and debit cards have seen the biggest rise.

Debit cards accounted for 61 per cent of all plastic card spend, totalling £195 billion – five times the amount spent in this way in 1996.

Credit cards accounted for 39 per cent of plastic card spend, with £126 billion being spent in this way – twice the amount of 1996.

“The last ten years have seen a rapid rise in the popularity of plastic, with debit cards showing particularly strong growth,” said Sandra Quinn, Apacs’ director of communications.

“Consumers enjoy the ease and convenience plastic cards bring and today most retailers and supermarkets take plastic, as do an increasing number of professional service providers.

“Over the next ten years it is expected that spending on plastic cards will continue to dominate the payments arena, accounting for 89 per cent of growth in UK payment volumes by 2016,” she added.

Spending in the retail sector saw the gap between cash and card payments widen between 2005 and 2006.

Tags: apacs, professional service providers, Association, debit and credit, payment, UK payment volumes, card payments

The changes brought about by debit cards

The debit card turned 20 on June 3rd and the banking industry has been looking back at how our lives have changed as a result.

Apacs, the UK payments association, has released a report called 20 Years of the Debit Card and it highlights how the cards have allowed our lives to alter in the past two decades.

Barclays was the first UK bank to provide customers with a debit card back in 1987 and 20 years on, 84 per cent of the adult population now owns one.

A total of 41 million people hold a debit card, a massive increase on the 27.8 million who had one in 1996.

The popularity of debit cards continues to grow, with Brits spending £194.9 billion on their cards in 2006, five times what we spent on them in 1996.

“It’s hard now for most of us to remember what life was like before the debit card, as it’s become one of those things we’re unlikely to leave home without,” said Jemma Smith from Apacs.

“Before 1987, most of us were totally reliant on cash or cheques, and although credit cards were used in supermarkets at that time, they only made up six per cent of transactions.

“Today, cards account for 66 per cent of supermarket spending, and most of this is on debit cards. In fact, over a third of all debit card transactions are made at the checkout,” she added.

It seems that debit cards will continue to be popular among consumers in the years to come, with spending on them expected to reach £400 billion by 2016.

Tags: apacs, cash, Jemma Smith, MasterCard, payment, massive increase, life, Electronic commerce

Cash machines reign supreme

The way we carry out our banking and, in particular, the way we get our cash has changed radically in the last ten years.

New research by the UK payments association Apacs has found that cash machine withdrawals nearly doubled between 1996 and 2006.

Ten years ago, only 34 per cent of our cash demands were met by cash machines, while in 2006 that figure stood at 65 per cent.

In addition, other card-based withdrawals, including cashback and over-the-counter transactions, have also grown, from eight per cent in 1996 to 12 per cent in 2006.

The total amount of money withdrawn from cash machines hit £180 billion last year, growing from £80 billion ten years previous, with Sandra Quinn from Apacs putting the shift down to a change in attitudes.

“On the supply side, there has been a steady trend by business and government away from the payment of wages and state benefits by cash and a huge growth in the number and accessibility of cash machines,” she said.

“There is now a massive number of cash machines in the UK – over 60,000 in total. Demographic trends have also shaped the pattern of cash acquisition; in 2006 for the first time, more than half of over 65s are regular users of cash machines.”

Experts predict that the trend will continue with 81 per cent of our cash coming from a ‘hole in the wall’ in 2016.

Tags: cash machines."Experts, payment, steady trend, hsbc, figure, time

Mortgage shock on horizon for many

Borrowers with a fixed-rate mortgage managed to avoid the recent interest rate rises but some are set to see their payments increase.

The reason, says mortgage broker London and Country (L&C), is that those who took out a mortgage two or three years ago may be about to see their fixed-rate deals come to an end.

L&C points out that the best two-year fixed-rate mortgage available in May 2005 was available from Newcastle Building Society, with a rate of 4.49 per cent and a fee of £420.

On a £150,000 interest-only loan, a borrower would have been making monthly payments of £561.25 per month. However, once the fixed-rate deal ends, borrowers will be paying 7.34 per cent interest, taking monthly payments up to £917.50.

“The payment shock for many borrowers will be substantial when their deals to come an end and it’s important that they do all they can to minimise it,” said James Cotton, mortgage specialist at L&C.

“The advice is simple: see what new deal your lender is willing to offer and shop around elsewhere.

“Most importantly, plan ahead and don’t leave it until you’re already paying Standard Variable Rate,” he added.

Borrowers are advised to try to get the best deal when taking out a mortgage for the first time but must be prepared to pay higher rates of interest once the deal comes to an end.

Tags: interest, broker, May, payment, Mortgage broker, building, GBP, Mortgage shock

Brits still love cheques

Although they are seemingly becoming a thing of the past, cheques remain extremely popular among Britons.

New research, carried out by Which? magazine, shows that 57 per cent of people over the age of 16 find them “really useful” for carrying out banking.

In addition, cheques are still widely used, with 55 per cent saying that they had used one as a form of payment in the last month.

The findings come as firms such as Boots and Shell are announcing that they plan to phase out the use of cheques.

Although the research may cause these stores to have a bit of a rethink about when to ban cheques, Which? found that they are correct to note that the method of payment is slowly dying out.

Of the 1,003 people survey, 72 per cent said that they use cheques less now than they did five years ago, while almost 25 per cent found it “annoying” to receive one.

Boots will no longer accept cheques in its stores from this month, while Shell has already phased them out at all of its 586 UK forecourts.

Tags: Credit card, bit, shell, rethink, shows, payment, Brits

Credit card holders becoming more savvy

It is something that many of us have done in the past, but the UK payments association Apacs says that fewer of us are making purchases with our balance transfer credit cards.

The organisation warns that people can get stung by spending on the cards, which are originally taken out in order to avoid paying interest.

In the past, many people found themselves transferring their balance to a new card, only to purchase more products.

This can put the cardholder in a dangerous situation as some credit card providers will revert you back to a normal interest rate if a payment is missed.

However, as a generation of cardholders grows up, Apacs believes that this practice is becoming less common.

“The point is that if you are taking out a balance transfer card you should only use it for balance transfers,” said Sandra Quinn from Apacs.

“Don’t do other things with it. I think increasingly people are starting to realise that.”

People who continually transfer their credit card balance between providers in order to benefit from zero per cent balance transfer rates are popularly known as rate tarts.

If you want to join the rate tarts and benefit from good introductory offers, make sure that you will be able to keep up the repayments and avoid making purchases on your new card.

Tags: new card, credit card balance, payment, transfer, Don, credit card providers

Potential PPI refund

Consumers could save themselves large sums of money by seeking a better deal on their payment protection insurance (PPI) for a personal loan.

That is according to the Post Office, which says some borrowers may find that they could save thousands of pounds.

The firm points out that PPI that is sold alongside a loan is normally added to the total sum of the amount borrowed, meaning the consumer will pay interest on the insurance.

Customers are now being urged to challenge their lender and could find that they receive a refund for the interest charged.

“The refund could be substantial, so people shouldn’t miss out,” said Claire Oldstein, head of communications at the Post Office.

“Banks and loan providers are in an ideal position to sell insurance with their loans, but customers should challenge them to find out what the true cost of their payment protection is.

“By comparing this to standalone policies, customers can see for themselves that better value deals are available,” she added.

The Post Office has recently called for an open PPI market in response to an investigation by the Office of Fair Trading.

The organisation wants it to be mandatory that consumers are told by lenders that they can get better or cheaper policies by shopping around.

Tags: payment, total sum, Financial Services Authority, head, organisation, consumer, shopping, sum

Financial habits are written in the stars

The time of year in which you were born may be affecting your payment habits and banking behaviour.

Research carried out by the UK payments association (Apacs) takes a light-hearted look at UK consumers’ payment habits according to their star sign.

The survey, which was completed by 2,000 people, found that Capricorns are the most financially astute, but they are let down when it comes to paying their credit card bills.

Scorpios are said to be the sign of the debit card, with the majority showing a strong preference for using this form of payment. In addition, people of this star sign are particularly financially savvy.

Those who fall under the sign of Libra are said to be uninterested in their finances and often fail to pay attention to detail, as well as being slow to check their statements.

“The guide takes a humorous astrological look at our payment habits. However there is a serious point to be made,” said Sandra Quinn, director of communications at Apacs.

“We all need to be conscious of how we are managing our finances – it pays to make sure you are doing it well and there is no better time than at the start of a new year to review things.

Ms Quinn says everyone should check their statements “promptly and thoroughly”, like Virgos, shred their documents when discarding them, unlike Taureans, and have a different pin number for every card owned, something not done by most Leos.

Tags: Capricorns, Libra, Payment systems, finances, UK payments association, card, payment, Credit card

The Pros And Cons Of Payment Protection Insurance

Lenders are always eager to convince borrowers to protect their repayments for loans, credit cards, store cards, mortgages and other financial products. And they have a point. People in the UK are saving less and borrowing more, with a high rate of debt. Read more

Tags: Insurance, Mortgages, claimsoft, fair, ppi, policy, credit

Only quarter of Brits have adequate insurance cover against loss of income

A recent study carried out has shown the low level of insurance protection cover amongst Brits against loss of income in comparison to the reliance of British households on more than one income. According to the study almost fifty percent of households in the UK rely on more than one income in order to cover living costs, spending, and expenses. However, only a quarter of Brits seems to have adequate insurance cover to protect against the loss of their income.

The data comes from the Scottish Widows Protection Report. The information from the report showed the low level of protection amongst Brits when it comes to insuring themselves against loss of income due to situations such as illness or death. The report also showed that the majority of Brits had less than two months salary in savings to cover them in the event that they ended up losing an essential income.

According to the report: “These findings show that if a breadwinner becomes long-term ill – or dies – the average household in the UK does not even have their essential expenditure covered – let alone enough money for those little luxuries.” The report also indicated that even those with over thirty thousand pounds in savings shouldn’t get too complacent about how they would manage in the event of a loss of income: “Many people aspire to do more than just ‘survive’ a crisis – they wish to maintain their current lifestyle.”

A spokesperson from Scottish Widows stated: “The majority of the population is walking a financial high wire without a safety net. Nobody knows what is around the corner, but we have to accept that all too often illness does strike and accidents do happen. If people don’t start to take responsibility for their own financial futures then they could be left in a position where they can’t even cover the essential expenditure in their lives.”

Tags: company, employed, lifestyle, Insurance, income, payment