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Money worries remain a concern for two in three Brits
- TSB research shows that although some price pressures are easing, a significant number of Brits still have concerns about their finances.
- Over a quarter have experienced moments of anxiety about their finances on more than a few occasions in the past six months.
TSB’s latest Money Confidence Barometer shows almost two thirds (63%) of adults in the UK say they have experienced moments of anxiety or worry related to their finances in the past six months. And nearly a third of Brits (31%) are finding it difficult or very difficult on their present household incomes.
The outlook for the next six months continues to be concerning for many people. While the majority (63%) felt the same about their financial situation as they did six months ago, a quarter (25%) were less confident. Of those feeling less confident, 56 per cent had a household income of less than £35,000 and around half (49%) were single or widowed / divorced / separated.
The overwhelming majority of people (86%) have taken action to help with cost-of-living increases over the past six months. For around half of people this has meant reducing spending on takeaways and eating out (53%) or trying to reduce consumption to reduce bills (49%). Other actions include:
- Spending less on leisure: 42%
- Spending less on groceries: 41%.
- Postponing bigger purchases: 28%
- Selling items: 21%
- Borrowing money from bank / other lender: 6%
The way people see their financial position has a clear impact on how they are managing their money. Those with a negative view are significantly more likely to spend less on takeaways and eating out (54%) compared to those who have a positive view (32%). They are around twice as likely to spend less on groceries (49% vs 24%), to cut back on spending on leisure activities (43% vs 24%) and to expect to have to use savings (32% vs 17%).
While only a small proportion of people think they may need to borrow from friends and family, a much higher proportion of those with a negative view think they may need to (13%) compared to those with a positive view (3%).
Over two fifths (41%) of those with a negative view of their current financial situation have not sought advice, help or information about their financial situation in the past six months.
Nicola Bannister, Financial Support Director, TSB said: “Our latest Money Confidence Barometer shows that for many people, cost of living is still top of mind – and many are choosing to cut back to make ends meet.
“For those who continue to be concerned there is help available. Speak to your bank or reach out to free debt management charities who will be able to point you to options for helping you manage your money.”
TSB is supporting customers:
- We’ve provided support for customers with the Money Worries pages on TSB.co.uk and our Mobile Banking app, developed in partnership with debt advice charity StepChange. The page also includes details of:
- Our partnership with Lightning Reach, a free one-stop online portal, that identifies and provides access to financial support such as benefits, grants and local discretionary funds – uniquely matched to individuals. Customers can register to see a range of support they may be eligible for in one place and easily apply for multiple types of support directly through the portal.
- We offer seven-days-a-week video-call service with TSB Money Confidence Experts to help customers manage debt and budget; review their finances to help pay important bills; and help with everyday banking tasks like online banking. Appointments can be made on TSB’s website.
- We have trained customer-facing colleagues on supporting customers affected by the cost-of-living. This ensures colleagues are better equipped when they do need to have difficult conversations, and better able to support customers with budgeting, saving and managing debt.
- We continue to assess the impact of the cost of living on our existing customers (e.g. forecasting how many existing customers could slip into negative affordability) to ensure we support those customers appropriately on an individual basis.
- We’ve established early warning indicators to ensure we help customers before they get into significant financial difficulty and then contact those most at risk of falling into arrears.
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Notes to editors
- TSB research was carried out by IPSOS among a nationally representative quota sample of 2,187 adults aged 18 to 75 in the UK, between 29th September – 3rd October 2023.
The information contained in this press release is intended solely for journalists and should not be used by consumers to make financial decisions.
