New map reveals scale of Wales’ cost of living crisis - including here in Montgomeryshire
4 months ago
Montgomeryshire least 'financially vulnerable' according to debt collection firm, but above the UK average for adults without emergency savings.
The data by debt collection firm Lowell suggests that much in Wales, in particular, is facing concerning financial hardship, most worryingly a surging use of credit to pay for goods or services because disposable funds are low.
Lowell’s searchable ‘UK Financial Vulnerability Index’ tool, created in conjunction with Urban Institute, shows how households are faring financially in different areas.
The map shows the share of adults without emergency savings, in default, using social benefits, and other metrics.
While Wales’ position has improved in some areas during the pandemic, such as the number of consumers with high cost loans, others have worsened, such as average credit use.
Whilst Montgomeryshire is the least financailly vulernable constituency in Wales, it tops the charts in having on average, a higher amount of adults without access to emergency savings than Wales and the UK.
You can explore our area here.
John Pears, UK chief executive at Lowell, said:
“The cost of living is increasing across the board and households are having to fork out more money to pay for essentials like food and bills.
“With the rising cost of living stretching budgets to their limit, people are turning to credit more and more.
“For many now, a single income shock can be enough to push a household into problem debt. People need help to reduce costs.
“The new government needs to take action to ensure households, especially the lowest incomes, get the support they need. With the recent changes to the price cap, bringing energy bills down has to be the priority. This needs to be at the top of the agenda.’
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