Finance fears as budget looms

A third of Brits between the ages of 18 and 70 are concerned their financial situation will get worse over 2017, according to new research released in the run up to this year’s budget announcement. Ran by the Chartered Institute of Personnel and Development (CIPD), the survey shows that just 15% believe they’re living comfortably financially, while around half claim they’re either finding things difficult financially or just about managing.

The Prime Minister has specifically identified the ‘just about managing’ area as a key focus for support, representing a third of those surveyed alone. 60% within this category admitted they would struggle to pay an unexpected £500 bill, and over three quarters believed they would fall behind on living expenses within three months of losing their main source of income.

This is something the CIPD believes exhibits the ‘daily battle’ a large portion of the British public is facing. As the looming hard Brexit has affected value of the pound and inflation is expected to continue through the next year, many employees are expected to feel the pinch. This is concerning for the HR company as they believe that there is ‘little room for manoeuvre’ for most of the public.

“It is clear that many people in the UK are living hand to mouth, and that a loss of income or an unexpected bill would present a serious financial challenge for them,” said Ian Brinkley, acting chief economist of the CIPD. “There is a clear risk that any financial hit, either as a result of Brexit negotiations or otherwise, could have a very damaging effect on fragile household budgets.”

49% of respondents felt unconfident that they will have enough money to live on when they retire, while over one in five admitted they would fall behind on bills within a single month without their income. Coming just before the Philip Hammond’s Budget announcement, the CIPD believes the chancellor has a ‘distinct challenge’ to prepare for the turbulent times ahead and to safeguard the many who are in fragile financial situations, while urging bosses to do what they can to help those struggling.

“Our research suggests that financial worries have an adverse effect on employees’ health, happiness and productivity, so besides being the right thing to do, it is in employers’ interests to invest in providing financial advice, guidance and support to their staff.”