Pandemic leaves quarter UK households struggling financially

UK financial regulator, the Financial Conduct Authority (FCA), has found that the Covid-19 pandemic has left over a quarter of UK adults with low financial resilience.

The survey found that whilst over a quarter of UK adults are now struggling financially, a lucky minority (14%) had actually seen an improvement in their financial situation.

Almost half (48%) of adults have not been affected financially by the pandemic.

According to the October survey, there are now 27.7 million adults in the UK with characteristics of vulnerability such as poor health, low financial resilience or recent negative life events. This figure is up 15% since the FCA completed its FLS in February, when 24 million displayed characteristics of vulnerability.

The FCA found that the number of consumers with low financial resilience (holding too much debt or with low levels of savings or low/erratic earnings) has grown considerably. Over the course of 2020, the number of UK adults with low financial resilience increased from 10.7 million to 14.2 million.

To cope with the hardships they expected to face, many adults reported that they were likely to cut back on essentials (33%) or to use a food bank (11%). A further 8.1 million (16%) expected to take on more debt.

With so many in the UK struggling financially, now is the time for financial services companies to make sure they are in regular contact with their clients and clearly communicating what help they can offer.

However, do not communicate in too much haste. Some poor communications have come back to haunt financial services companies, both large and small, over the past year. When people are struggling and much of the country is under considerable stress, it is important to make sure the tone of your communications is helpful without being condescending or grandiose.

A good communications consultant can help you make sure you hit the right note. Get in touch with us today for a free evaluation of your marketing communications and to learn what we can do to help.