Press releases

FALL IN CPI WILL BE VERY GOOD NEWS FOR 10 MILLION HOUSEHOLDS USING SAVINGS TO PAY BILLS ACCORDING TO LEGAL & GENERAL MONEYMOOD SURVEY.

Mark Gregory - Group Chief Financial Officer
Mark Gregory
Group Chief Financial Officer

20 March 2012

Mark Gregory - Group Chief Financial Officer
Mark Gregory
Group Chief Financial Officer

Figures from the Office for National Statistics (ONS) show that CPI had fallen to 3.4% in February – well below its peak in September 2011, when CPI stood at 5.6%. This will come as a welcome relief to millions of households who have to put money aside to pay household bills

Saving to pay household bills is up:

Legal & General’s MoneyMood Survey shows that almost half (49%) of households, around 10.2 million homes are having to put money aside to pay household bills, a significant rise – up by 48% - compared to this time last year.

The most significant increases appear to be in the south where 2 million more homes are now saving to pay household bills. Wales and the East Midlands appear to be “bucking the trend” as the number of households saying they are saving to pay bills has fallen in these two regions year on year.

MoneyMood Survey ® What are you saving for? - To pay household bills…
(Note: to view this chart, which shows the change in the number of people who say they're savings to pay household bills this year, please click on the link on the right of this page.)

Commenting on these findings Mark Gregory, Legal & General Executive Director Savings said; “For many households today’s inflation figures will be very good news. Our latest figures show budgeting to meet short term needs has become the immediate concern of 10 million households up and down the country. This means that across the UK over 3 million more households were saving for short term needs such as paying the bills since this time last year. The recent downward trend for consumer prices should mean that fewer homes now have to put money aside to pay household bills and are more likely to be able to focus on their long-term needs, such as saving for retirement. Last month we showed that Wales and the East Midlands appeared to be managing their household finances slightly better than the rest of the UK, which may indicate that the fall in consumer prices is already having a positive impact in these regions.”

REGIONAL DATA

Across the UK the number of households saying they’re “Saving to pay household bills” has increased significantly year on year and now stands at 10.2 million – up by 3.2 million. But the change is most significant in regions in the south of the country with London, the S East and S West accounting for more than two thirds (2.3 millions households) of the shift to saving to pay for short term needs. 

See table below: 

 

REGIONAL DATA

Number of households “Saving to pay household bills”
Region
To pay household bills  Q1 2011 %To pay household bills  Q1 2012 %% Change year on yearNumber of households saving to pay bills in 2012Based on Households per region  (million)
 N East29 53 +83 Up 192,000 0.8 
 N West45 47+4Up 46,000 2.3
Yorks and Humberside35 34-3 Down 18,000 1.8
E Midlands57 40-30 Down 272,000 1.6
W Midlands34 48+41 Up 252,000 1.8
East Anglia29 49+69 Up 400,000 2.0
London24 51+112Up 730,00  2.7
South East 2652+100 Up 754,000 2.9
South West15 65+333 Up 850,000 1.7
Wales69 34-51
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