New analysis reveals on average 25% of households experienced financial difficulty over the last year – and that’s even before energy prices went up in October.
The figures, based on an analysis of the Bank of England’s household survey data from September 2021 to September 2022, also show how 1 in 10 households said they were already falling behind on bills before the price hike.
And it reveals areas outside of London were harder hit – but that in the capital too, half a million households (14%) are hit by money worries.
1.5 million households in the South East have experienced financial difficulties.
It comes as concerns about the state of the UK economy continue to grow. 12 years of Tory policy choices have weakened Britain’s economic foundations even before the government crashed the economy and left working people paying the price with higher mortgages and prices. The UK is set to experience the highest inflation in the G7 this year.
Labour have said their plans to grow the economy won’t just get money flowing back into it but also create good jobs and more wealth across all parts of the UK.
Stephen Morgan, MP for Portsmouth South, said:
“With so many families Portsmouth and across our country now struggling to pay their bills, these figures are a stark reminder that this government have been failing Britain for some time without regret or resolve.
“Government are not doing enough to help our city’s communities during this cost of living crisis or ensure local people receive the support that is so desperately needed. Only by raising living standards, ensuring that our economy grows in a way that works for everyone, and delivering a fairer, greener future, can we hope to rebuild a country that we can all be proud of.
“Only a Labour government can deliver what our country needs and get Britain back on its feet.”
Commenting on the figures, Labour’s Shadow Chancellor Rachel Reeves, said:
“Families across Britain deserve to know that the government is doing all it can so our country thrives, and doesn’t just survive.
“Labour’s plans to create good, new jobs across the country, through our Green Prosperity Plan and an active partnership with business will get it our economy growing so we can raise living standards.
“The cost of living crisis has been biting for far too long and not only have the Tories refuse to come forward with long term plans for our economy, they’ve made it worse and left working people paying the price. Britain deserves better than this and with a Labour government they will get that.”
