Almost half of people in Wales claim they are finding it harder to manage financially now compared with a year ago a survey by watchdog Consumer Focus Wales claims.
The Consumer Finances in Wales survey also shows that one in four people (26 per cent) believe their cash problems will get worse in the coming year, yet almost half of people (49 per cent) in Wales say they don’t have any savings put aside for a rainy day.
Economic decline has resulted in 84 per cent saying they have made changes to their spending behaviour, with 30 per cent admitting they are spending less on groceries.
Nearly three-quarters (72 per cent) of people admit they are anxious about the general rise in the cost of living. This is illustrated by just over half (54 per cent) saying they are worried about paying for their winter gas and electricity bills, while rising petrol prices (54 per cent) and food prices (49 per cent) also feature highly in people’s concerns.
Lindsey Kearton, debt expert at Consumer Focus Wales, said: ‘The rising cost of living is a major concern for everyone. Following the recent budget announcements pressures on household finances are likely to get worse.
‘More worryingly our findings show some of the most vulnerable such as the unemployed and people with a long term illness are more likely to be cutting back on essentials such as groceries and energy use.
‘While most people are trying to cut back on their spending, what we mustn’t do is overlook the disproportionate effects this could have on the health of the most vulnerable who often live on very limited budgets.’
Other findings in the report include:
- 41 per cent said they are spending less on socialising;
- 41 per cent spend less on clothes/shoes;
- 27 per cent say they are spending less on overseas holidays;
- 23 per cent are using the car less.
Vulnerable people:
Consumers with long-term illnesses or disabilities score above the Wales average in many question categories. In particular, 75 per cent in this category are worried about paying their winter energy bills, while 55 per cent said they were finding it harder to manage financially than a year ago. Almost two-thirds (62 per cent) said they were being more careful with energy consumption while 37 per cent said they spent less on groceries. More than half (54 per cent) said they don’t have any money put aside for a rainy day.
Background notes:
The research was carried out by Beaufort Research Ltd during March and April 2010. More than 1,000 people representative of the adult population in Wales took part in the survey, which was conducted face-to-face in people’s homes.
The first in our new series of briefing papers on ‘Consumer Finances in Wales’ is due to be published in early August. The first paper will be focussing on credit use and debt levels in Wales.
