Around eight million people in the UK are struggling to pay their bills as the country is reeling under historic inflation rates that have increased to a 40-year high, according to the City watchdog.
According to a survey by the Financial Conduct Authority (FCA), around 7.8 million people are finding it a “heavy burden” to pay their bills, an increase of 2.5 million people since 2020.
People are grappling with high energy, food and fuel prices that have consistently risen in the last six months, partially because of the war in Ukraine.
The FCA, which regulates UK businesses but operates outside the purview of the UK government, found around 24 per cent, or one in four adults, in the UK were facing financial pressure or could find themselves suffering difficulties if they suffered financial shocks.
The survey also showed that 4.2 million people have already missed deadlines for bills or loan payments it at least three of the six months before the survey took place between February and June this year.
“Our research shows that people up and down the country are struggling to keep up with their bills,” said Sheldon Mills, executive director of Consumer and Competition.
“If you are facing financial difficulty, you don’t need to struggle alone. There is free debt advice available, and we have told firms that they must work with their customers to solve any problems with payment.”
The survey found people living in the “most deprived areas of the UK” are seven times more likely to face financial woes than those living in less economically challenged regions. Around 12 per cent of people in the northeast and 10 per cent of those living in the northwest are struggling, compared to six per cent in the southeast and southwest.
The Financial Lives survey was conducted on 19,000 respondents. The detailed findings of the survey will be published early next year.
The survey showed 60 per cent of adults across the UK are under “a heavy burden or somewhat of a burden to keep up with their bills”, a rise of around 6 million people since 2020.
The findings come as British prime minister Liz Truss announced her resignation on Thursday after her tumultuous political career was marred by economic policies that roiled financial markets and led to a rebellion in the conservative party, obliterating her authority.
