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Quarter of adults unable to pay an unexpected but necessary £850 expense

ended 16. August 2024

New data published by the ONS this morning has shown that around a quarter (25%) of adults believed they would be unable to pay an unexpected but necessary expense of £850. On a slightly more positive note, just over half (54%) of adults reported their cost of living had stayed the same in the past month with less than half (45%) reporting that their cost of living had increased. However, around 1 in 8 (13%) adults strongly disagreed or disagreed that their household income covers their minimum basic living needs. Newspage asked experts for their views, below.

3 responses from the Newspage community

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Patricia McGirr
Founder at Repossession Rescue Network
This isn't just about numbers; it's about lives hanging in the balance. We need urgent action to tackle both the financial and social roots of this crisis before it's too late. Today's data is a stark reminder that millions of adults in the UK are just one unexpected bill away from financial disaster, and the toll isn't just financial, it's a full-blown mental health crisis. Over 6,000 people a year commit suicide due to financial stress. With 25% unable to cover an £850 emergency expense and repossession figures soaring among homeowners and landlords, we are facing an economic and social emergency that is quietly devastating households. The stress of not being able to meet basic living needs is pushing people to their breaking point, and yet we're not doing nearly enough to address the underlying issues.
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Riz Malik
Independent Financial Adviser at R3 Wealth
We still have people struggling to make ends meet with many relying on their flexible friend to make up the shortfall. Hopefully, as financial pressures ease, there will be no surprises in the upcoming budget. The chancellor has said on a few occasions that taxes will need to rise but which taxes and when is the question on everyone's lips.
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Ross Lacey
Director & Chartered Financial Planner at Fairview Financial Management
This is the reason we're so passionate about Income Protection insurance as there are so many people who have minimal provision for emergencies and could only go so many months without earning. They also get little to no sick pay so if they get ill or injured and can't work, they're in serious financial trouble, too.