Family financial wellbeing `at a two-year low`

UK households saw the steepest monthly drop in their financial wellbeing for two years, the latest Markit Household Finance Index (HFI) has shown.

The index fell to 35.2 points in March, down from 35.6 in February. Average household disposable income fell to the lowest level since March 2009, with costs of living rising and salaries increasing more slowly than inflation. Almost 35% of households said their finances had worsened since February, compared with just 5% who said their situation had improved.

Tim Moore, a senior economist at Markit, commented: "The March HFI survey presents a bleak assessment of household finances ahead of the UK budget. Job insecurity and worries about higher everyday living costs once again dominate the outlook for household finances."

An expert at debt management company Gregory Pennington said: "Figures like these are a reminder that things are still very difficult for many households, and we advise people to act accordingly: as far as possible, everyone should make sure they are financially prepared for the possibility of redundancy or a fall in disposable income.

"A good savings account could be especially useful in a financial emergency. It may also be a good idea to work on reducing any outstanding debts, which could cause real problems for borrowers who find themselves unable to meet all their commitments."



Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.