The ONS this morning published a report showing that, in December 2021, less than half of people (46%) thought they would be able to save money in the next year, and two thirds of people (66%) said their cost of living had increased at the end of 2021. We asked money experts for their views.
6 responses from the Newspage community
"You can see the impact of inflation playing out before your eyes. At the lower end of the income scale, it is extremely hard to save money when you need every last penny just to get by. As you move up the income scale, and you meet your basic expenditure needs, it is then a case of getting into good habits to ensure you save every month."
"Unfortunately, these figures don't surprise me. Previous research has found over a third of people are just one payday away from disaster. Hence, with rising inflation, it's understandable that most people are currently unable to put anything aside for the future."
"Vast swathes of the public are feeling the pinch and their savings pots are being sacrificed as a result. We need radical action and reform to fix things. This means scrapping the planned NI tax rise getting a proper settlement with the EU, bringing capital gains in line with income tax rates, overhauling council tax and introducing a universal basic income. Or we can just continue as we are, which is likely what will happen."
"These statistics are highly concerning although not exactly surprising. This year households are set to face a triple whammy of inflation, increasing interest rates and tax rises. People's finances are being stretched like never before."
"Lockdowns unwittingly exacerbated the wealth gap. Those that were able to continue their roles on the same pay were doing so from home and spending considerably less. These tended to be the more professional roles, which generally have higher pay. The impact of lockdowns was much greater on the lower-paying roles who went on furlough because their workplaces were forced to shut. My guess is the former still have money saved up, but it's the latter who are really feeling the squeeze. Yet again, we see unintended consequences of Government policies hit the poorest hard."
"For many, inflation has been this mythical bogeyman your parents talked about but never comes. 2022 is going to be short sharp shock to the system for a lot of the public, particularly those whose finances were already stretched close to the breaking point. For a lot of households, savings will be put to one side."