Tag: standard of living

Nearly half of British adults expect fall in standard of living

  • Energy prices and cost-of-living crisis top list of financial concerns
  • Women are more concerned about external factors, such as a recession, impacting their finances
  • People plan to increase time spent reviewing their finances due to rising costs

Nearly half (46%) of UK adults are worried that their standard of living will fall over the next 12 months, reveals research conducted on behalf of Handelsbanken Wealth & Asset Management. 

Concern was highest among those in their 30s (55%), dropping to 38% of over 50’s – likely due to accumulated savings.

Despite recent declines, energy prices still top people’s biggest concerns on the factors threatening their living standard, along with the cost-of-living crisis and high prices caused by inflation.

External risks worry women more

Women are more concerned than men about most external risks to their finances, including inflation (79% versus 72%), rising interest rates (59% versus 52%) and a recession (83% versus 73%). However, men worry more about geopolitical instability (57% versus 50% women) and stock market volatility (42% versus 37% women), with the latter perhaps due to being more inclined to invest, the research also revealed.

Divided on death and divorce

Men are more concerned about losing wealth through divorce (24% versus 19%), whereas women are more likely to fear the financial impact of their partner or spouse dying (47% versus 42%).

Proportion of people concerned about various factors impacting their personal finances

FactorOverall proportion of individualsWomenMen
Energy prices78%80%74%
The cost-of-living crisis / recession78%83%73%
Inflation76%79%72%
A global economic downturn63%63%63%
Rising interest rates55%59%52%
Income tax increases54%56%53%
Geopolitical instability53%50%57%
Scams and frauds51%56%46%
Death of a partner / spouse45%47%43%
Stock market volatility40%42%37%

Time invested

The study showed that these concerns are changing how much time we spend reviewing our finances each month.

On average, consumers spend over six hours a month on their finances, with groceries and other household costs taking up the most time (52 minutes) followed by bank account management (48 minutes), and paying for holidays (42 minutes). Wealthier people with assets over £100k spend longer keeping their financial house in order, averaging eight hours a month. Men, meanwhile, typically spend around 20% longer than women.

A tougher financial climate means we expect to spend more time managing our finances overall, largely in response to dealing with rising costs and stubborn inflation (48%) and the need to save more money (41%).

When it comes to those looking to decrease their time investment, nearly a third (29%) said they plan to reduce the time spent looking at their financial affairs as it makes them feel too anxious.

This may go some way towards explaining the fact that a significant proportion of people don’t currently spend any time at all reviewing commitments such as their pensions (33%), insurance (31%) or investments (23%).

Alasdair Wild, Area Manager at Handelsbanken Wealth & Asset Management, said: “Dealing with the ongoing cost-of-living and keeping your finances in check can be a time-consuming process and a real challenge for most people given there only are so many hours in the day. 

“However, doing the bare minimum is unlikely to offer much protection in such a tough financial climate, and investing time to plan and manage your finances and, when required, bringing in external professional support, can make a real difference to protecting your standard of living.

“While avoiding the issue may provide temporary relief, it will only exacerbate problems down the line, so seeking support is key.”

Click here to view the full research report Gender and generation: unravelling the wealth gap.

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Children’s Commissioners urge UK Government to stop violating children’s rights to an adequate standard of living

The Children’s Commissioners of Scotland, Wales, and Northern Ireland have repeated their calls to the UK Government to end its two-child limit on Universal Credit and Child Tax Credit warning that the policy continues to violate children’s human rights. 

All three have also called on the UK Government to abandon the scrapping of the £20 uplift, which would compound the poverty issues facing children across the nations, and urge the prioritisation of children’s rights in any further changes to Universal Credit.  

Giving evidence yesterday  (Wednesday, September 8) to the Public Services Committee at the House of Lords, the Commissioners again pointed out that the two-child limit policy – which disallows benefits payments to third and subsequent children born after April 2017 in most circumstances – is a discriminatory policy contrary to the government’s obligations under the United Nations Convention of the Rights of the Child.  

Children’s Commissioner for Wales, Sally Holland said: “We remain deeply concerned that the two-child policy and the scrapping of the £20 uplift breaches childen’s rights to an adequate standard of living and is contributing to a rising gap in poverty levels between families with three or more children and smaller households.  

“The two-child limit in particular has a disproportionate impact on social groups where larger families are more common, such as some minority faith and ethnic groups and in Northern Ireland where families are larger than the rest of the UK.”  

The Commissioners – Bruce Adamson for Scotland, Sally Holland for Wales, and Koulla Yiasouma for Northern Ireland – remain concerned that UK benefit rules prevent devolved governments from fully tackling child poverty.   

Speaking after the Committee session, Children and Young People’s Commissioner for Scotland, Bruce Adamson said: “The Scottish Government had an opportunity yesterday within the Programme for Government to do all that it can to mitigate against the worse of the UK Government’s benefit rules.

“While new commitments on housing, food and the new Whole Family Wellbeing Fund are welcome, not increasing the Scottish Child Payment with immediate effect was hugely concerning as children need this money now.

“Poverty is a human rights issue and while UK benefit rules continue to play a significant part in keeping families in poverty, the Scottish Government plays an important role in ensuring children’s rights are met. The effects of the pandemic – which are still becoming clear – have only served to make a dire situation worse for those in poverty or only just getting by. Both governments must do more.”

Commissioner Sally Holland said: “Children are hungry and living in sub-standard housing in the UK in 2021 and that is a disgrace. Poverty affects every aspect of a child’s life, from their health – both physical and mental – to their education. How can a child concentrate properly at school and learn if they are hungry? 

“The State has an obligation to children and every child has the right to an adequate standard of living. Families have a right to social security. These polices are a clear breach of children’s human rights.”  

  In May, the Children’s Commissioners of Scotland, Wales, and Northern Ireland wrote an open letter to the Right Honourable Thérèse Coffey, Secretary of State for Work and Pensions, calling for an end to the two-child limit of Universal Credit and Child Tax Credit and for the £20 uplift in universal credit amounts to be maintained.