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30% of households report drop in finances

Three in 10 UK households reported a drop in their household finances in August, says the Markit/YouGov Household Finance Index.

The drop reflects a decline  in income from employment and a rise in price of goods and services plus a falling rate of job security.

There was also a perception of falling house prices but 29% expect a rise in prices with 26% anticipating a decline.

A total of 47% of households expect their finances to worsen in the next year while 25% anticipate and improvement.

Tim Moore, economist at Markit, says: “Stronger growth in the UK economy has done little to put a floor under the downturn in household finances. A downbeat mood spans the household income spectrum, but remains most acute amongst the lowest earners.

“Household finances continue to suffer from a backdrop of squeezed disposable income, stubbornly high inflation and ongoing public sector spending cuts. Meanwhile, job security in the private sector fell at the fastest rate for thirteen months, suggesting that the renewed bout of employment concerns has reverberated beyond the public sector.”




Swaps fell pretty sharply for the second week in a row to a new all-time low. Hopefully these drops will be passed on. When you look at some of the swap rates and compare them with lenders’ fixed rate offerings there seems to be a pretty big difference. But of course lenders have other costs […]


Lenders’ margins on mortgages hit a two-year high says the margin between mortgage rates and the cost of funding to lenders via swap rate markets is at an all-time high.Two years ago the margin on a two-year fixed deal was 1.28%, compared with 3.29% today. Michelle Slade, spokeswoman for Moneyfacts, says borrowers will be angry at this news, especially at the government-backed […]

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Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.


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