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Recession bites for more than one million

Recession bites for more than one million

Category: Money

Updated: 08/05/2012
First Published: 08/05/2012

MONEYFACTS ARCHIVE
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The double dip recession has hit more than one million more households since the downturn began last autumn.

The UK was recently confirmed as falling back into recession, and it appears the effects are filtering through to households up and down the country.

Research by Legal & General has revealed that the number of households who say they're struggling to pay bills or falling into debt has risen by 1.2 million by the end of April 2012, compared to September 2011 – the beginning of the double dip recession.

The rise means that there are now around 3.3 million households in the UK with more money going out than coming in each month.

"That's more than a million higher than back in September last year, just as the first quarter of the double dip recession was about to kick in, when that figure was 2.1 million," said Mark Gregory, executive director of savings at Legal and General.

For those families who are struggling our latest figures indicate the average monthly shortfall nationwide is just under £74 per month.

The figures also show that the number of households who say they have some money left after paying bills each month, is at its lowest level since the Coalition Government came to power in May 2010

Just four out of ten households have any money left over at the end of each month, making savings an impossibility for many.

The highest monthly shortfall is in the West Midlands, with households' outlay £108 more than is being brought in.

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