Since the start of the double dip recession last September there has been a fall in the number of financially stable homes, as well as a rise in the number of households struggling to meet their monthly outgoings.
Despite showing some signs of improvement at the start of 2012, the survey now estimates around 3.3m homes are in danger of sinking into debt and are unable to cover bills and debts from their monthly income.
This figure has risen sharply from the 2.1m households classed as ‘struggling’ in September 2011.
Across the country each household faces an average shortfall of £74 per month, with the West Midlands suffering most with an average monthly deficit of £108.
The survey suggests that across the UK the most financially challenged households are facing a national shortfall of £244m each month.
Legal & General’s executive director savings Mark Gregory said: “The latest figures from our MoneyMood survey show that around 3.3m households in the UK say they are spending more than their income on paying bills and debts. For those families who are struggling our latest figures indicate the average monthly shortfall nationwide is just under £74 per month (£73.94).
“This is an improvement compared to 3 months ago, when the average shortfall stood at £96 per month. However, the overall monthly shortfall across the nation has gone up in total by over £30m driven up by the higher number of households unable to make ends meet. We estimate the nation’s monthly shortfall now stands at £244m each month.”
Rob Killeen, mortgage adviser at Capital Fortune, said that government cuts continue to hurt households: “People are now finally starting to feel the pinch, and as the proposed cuts take effect, people’s budgets will be further stretched.”
