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Almost three-quarters of the UK (73%) say they are worried about their current financial situation now that the recession is over, according to a survey commissioned by poverty charity Elizabeth Finn Care.
This figure, combined with unemployment, inflation and the continued fragile housing market, signal that while the recession may be over officially, people's personal finances and the economy still face a bumpy ride.
The research reveals that 39% of respondents think that they will be financially worse off in six months time, with this figure increasing through the age groups – half of those aged over 55 believe they will be financially worse off as the year end approaches.
Matthew Sykes, Chief Executive, Elizabeth Finn Care, said: “The research clearly demonstrates the effects of the financial crisis on the British people. It’s worrying to see that over a quarter (27%) of those who think they will be finally worse off in six months, have no savings left. We must never forget the human cost of the recession and the medicine being applied to the British economy.”
Of those who think they will be in a worse financial position by the end of this year, a third believe this will be as a result of the new coalition government, with 40% putting their money worries down to an expected rise in national insurance and income tax. This is despite the fact the new coalition government has not suggested an increase in income tax and national insurance is not set to rise until April 2011.
Interestingly, only 5% of people think they themselves are responsible for their worsening financial situation.
Meanwhile, just under half (46%) who believe their financial situation will be worse in six months time think they will have to cut back on petrol and transport costs, while in a worrying sign for the High Street, over a third (36%) will make savings on food.
This fits in with research carried out by Elizabeth Finn Care in 2008, with 32% of people it helped forced to skip meals before contacting the charity and over half unable to afford the transport costs involved in visiting family and friends.
Matthew Sykes added: “We know from experience that it can take a long time before people begin to seek help with their financial predicaments, as often they are too ashamed or embarrassed to approach a charity for support. By that time, many will have used up all their savings and will be accruing debt. We would encourage people in this situation to use Turn2us to look at ways of maximising their income ahead of falling into financial difficulties.”
Turn2us, part of the Elizabeth Finn Group, offers a comprehensive website enabling people to check their benefit entitlement and search for grants from over 3,500 charitable funds online. In the period January-April 2010, 1,120,968 people visited www.turn2us.org.uk
ENDS
For information, photographs and interviews, please contact:
Kellie Smith, Senior Press Officer. Telephone: 020 8834 9263. Mobile: 07783 435 746.kellie.smith@elizabethfinn.org.uk
Will Davies, Press Officer. Telephone: 020 8834 9259. Mobile: 07855 419 901.
will.davies@elizabethfinn.org.uk
Hythe House, 200 Shepherds Bush Road, London, W6 7NL.
Notes to Editors:
• All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2237 adults. Fieldwork was undertaken between 21st - 24th May 2010. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
• Elizabeth Finn Care is a charity that supports people struggling to cope with sudden or unexpected changes in their circumstances.
• Since being founded in 1897, the charity has given away over £130m to people in need In 2009/2010 over 3564 British and Irish citizens were given grants totalling £3,669,920 by Elizabeth Finn Care.
• Turn2us was founded by Elizabeth Finn Care in 2007, and merged into Elizabeth Finn Group in October 2009.
• Turn2us helps people in financial need access the money available to them – from welfare benefits, grants and other financial help – through its comprehensive website (www.turn2us.org.uk) and freephone helpline.
• The Group has won many awards including the Investing in Volunteers Award in 2009 and the Third Sector Excellence Award 2008 for Innovation in Grant Making (Elizabeth Finn Care), The Helpline Association Quality Standards Accreditation and the Shaw Trust and Plain English Accreditation both in 2009 (Turn2us) as well as numerous awards for its Homes.