Almost 60 per cent of Brits either struggling financially, or concerned about money in the near future, due to Russia’s war in Ukraine and the cost of living crisis.
The economic effect of the conflict has exacerbated the rise in energy and food, against the backdrop of increasing inflation, which is set to exceed the Bank of England’s prediction of seven per cent, later this week.
57 per cent of those polled by KIS Finance are either struggling – or are expected to face hardship in the coming weeks and months, with those already managing their money problems representing 27 per cent of people surveyed.
35 per cent are 18-24-year-olds, and there is also concern among over-55s too, with 36 per cent worried the crunch of living costs will hit them.
In particular, fuel costs continue to rise with oil prices at their highest level for 14 years and the price of gas having doubled.
Despite the UK only getting five and six percent of its oil and gas from Russia respectively, countries in the European Union sources a lot of its fuel from Moscow, which is heavily sanctioned because of the war. This is causing a knock on effect for prices of goods either produced or imported to the UK.
Holly Andrews, MD at KIS said the squeeze on wages and rising costs of living mean that “more people will be facing difficult times making ends meet.”
This comes after it was reported that real-term wages were falling and rent across the country, but in particular in the capital, were rising.
Andrews added that increased interest rates of 0.5 per cent, which is likely to go up later this week “has already impacted on the housing market, with banks and building societies withdrawing over 500 mortgage products from the market in March.”
“With the cost of borrowing increasing alongside the rising cost of living, those saving for a deposit will find this even more challenging. Similarly those applying for a mortgage may find it more difficult to meet income requirements, as disposable income is hit by the rising cost of essentials.
“As everyday costs rise finding ways to save money is becoming even more important. Set out below are some of our top tips for saving money on petrol costs”.