1 in 3 can’t cover costs

25 January 2011

A young woman

Almost a third (28 per cent) of UK adults spend more money each month than they have coming in, research by The Co-operative Insurance and Shelter shows.

Increased housing and living costs such as rent, mortgage payments and fuel bills mean that:

  • UK adults face an average shortfall of £165 a month, with more than a quarter (26 per cent) unsure whether they can pay their bills on time.
  • 70 per cent of people are worried about their cash flow, with 25 to 34 year-olds being the most concerned - three quarters of people in this age group (74 per cent) admit to having money worries.

The research also highlights that more than a fifth of the population (22 per cent) don’t think having home contents insurance is important, although nearly 80 per cent of people say they’d be unable to afford to replace expensive items without it. And one in 10 (8 per cent) admit that they undervalued their home contents to keep insurance premiums down.

Lee Mooney, Head of Home Insurance at The Co-operative Insurance, said: ‘Although times are tight and the vast majority of people don’t have spare cash, it’s important to prioritise what you need above what you want in the year ahead.

‘It’s worrying to see that such a high proportion of people don’t think having home insurance is important, as without it they could be left open to serious risk and further unaffordable expenditure in the long run.’

This winter, The Co-operative Insurance has donated £5 to Shelter for every new home insurance policy taken out, raising £250,000 to help us provide support to people needing debt and housing advice.

Campbell Robb, Shelter’s Chief Executive said: ‘Every day Shelter’s advice services are helping increasing numbers of people who are finding it difficult to manage their finances and keep a roof over their head.

‘The support Co-operative Insurance provides through our partnership is vital in making sure we reach as many people in need as possible and we are extremely grateful for their help.’

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