Brits over £200 worse off as cost of living crisis continues
Brits have found themselves over £200 worse off each month compared to last year, as they continue to suffer the consequences of the cost of living crisis.
According to the latest report from specialist bank Shawbrook, the average UK adult is suffering a deficit of £224 each month.
Nearly 40 per cent of people confirmed they were worse off compared to last year, with women being affected in particular, with 43 per cent saying they were suffering financially.
Among age groups, Gen X, were in particular feeling the squeeze, with over 50 per cent acknowledging their situation had worsened.
Brits have suffered multiple crushing personal finance blows so far this year, as bills, taxes and food prices soar while wage growth fails to keep pace with rapidly spiralling costs.
Homeowners hit the hardest
Meanwhile, homeowners were hit the hardest, as mortgage holders reported an even higher average monthly deficit of £262 compared to 2024.
The difficulties reflect the state of the UK property market, as more prospective buyers struggle to get on the ladder and others scramble to pay off their mortgages.
According to price comparison website Money Supermarket, the average UK house deposit is £75,072, a sharp rise from last year’s figures of £71,565.
Steve Griffiths, commercial director for retail mortgages at Shawbrook, said: “The widespread financial pressure facing households today is undeniable, with mortgage holders among the hardest hit.”
Forced to make changes
The ongoing crisis has forced many to change their spending habits in order to remain in control of their finances, with 60 per cent having cut-back on non-essential spending.
One in three has also created a monthly budget, while a quarter opted to shift money into emergency savings funds.
Others chose to take on second jobs or consolidate their debt repayments in a bid to save money.