62% of people feel no better off than they did last year and 65% don’t think the Chancellor understands the financial fears of ordinary people
More than three quarters of consumers (76%) say they have seen no improvement in their general standard of living – in fact a third (36%) feel it has deteriorated
Half (51%) say their essential household bills have increased over the last year
70% of consumers say NHS cuts are the biggest issue the Chancellor failed to address, followed by care costs for the elderly (57%) and the cost of energy (54%)
But the introduction of the new flexible ISA (48%), the introduction of tax-free savings allowance (42%) and the rise in personal tax allowance to £10,800 (31%) were crowd pleasers.
Despite the Government declaring Britain the ‘comeback country’, 62% of Brits say they are still not feeling the benefit of economic recovery in their own financial situation, according to research by Uswitch.com, the price comparison and switching service.
The majority (76%) of people say they have seen no improvement in their general standard of living over the last 12 months, with 51% witnessing an increase in essential household bills. To cope, 54% are reducing the amount they spend on food, 57% have cut down on heating and hot water, while 21% have even had to cut back on essential healthcare, such as dentist appointments and prescriptions.
The research highlights that the Chancellor is out of touch with consumers’ financial struggles – almost two thirds (65%) say he doesn’t understand the financial fears of ordinary people. Furthermore, 57% don’t trust the current Government to make the best decisions for their financial future.
The Chancellor failed to address some of the country’s biggest issues, according to the research. 70% of consumers cited NHS cuts as the top issue ignored in yesterday’s speech followed by care costs for the elderly (57%), the cost of energy (54%) and youth unemployment (33%).
Nevertheless, there were some popular policies announced, including attractive tax cuts for first-time buyers, workers and savers. Consumers are very satisfied with the introduction of the new flexible ISA (48%), the introduction of tax-free savings allowance (42%) and the rise in personal tax allowance to £10,800 (31%). In addition to this, 30% welcome the unexpected new Help to Buy ISA.
Overall more people feel they’re financially better off (29%) than worse off (20%) as a result of the announcements made in the Budget. In a boost to the Chancellor’s ‘long-term economic plan’, people feel more confident about the country’s finances (40%) than they did after last year’s budget (36%).
David Mann, money expert at Uswitch.com, says: “The Chancellor has dubbed Britain ‘the comeback country’ but many aren’t yet seeing the benefits of economic recovery. With many still being forced to make cutbacks across their everyday lives to have a basic standard of living, there’s still a long way to go.
“There was some good news for savers who have suffered a raw deal throughout the recession with rock bottom interest rates. A rise in the minimum wage is encouraging and thanks to the increase in the tax-free personal allowance, the average earner will be £120 better off a year. However, Osborne’s claim that ‘the pound goes further these days’ has left many believing he doesn’t understand the financial fears of ordinary people.
“The Chancellor’s speech is a reminder to consumers to take a good look at their own household budget to see where it’s possible to cut costs, no matter how small. It’s crucial that no-one is stuck paying over the odds for essential bills and existing debt. By taking control of their finances, people can look to start the next financial year in a more positive position, regardless of the upcoming election results.”
For more information visit www.uswitch.comversion or call 0800 093 0607
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Katherine Moss
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Email: katherine.moss@uswitch.com
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Notes to editors
Research carried out online with the Uswitch.com Consumer Opinion Panel on 18th March 2015 amongst a sample of 5,418 GB adults.
In response to ‘Are you feeling the benefits of the economic recovery? (ie. Do you feel better off than this time last year?), 62% said ‘No’
In response to the question ‘Do you think the Chancellor understands the financial fears of ordinary people?’, 65% said ‘No’.
In response to ‘Do you feel any of the below have improved/worsened since this time last year?’ Your general standard of living, 40.5% said ‘Stayed the same’, 25.5% said ‘Worsened a little’ and 10.4% said ‘Worsened significantly’ = 76%.
In response to ‘Do you feel any of the below have improved/worsened since this time last year?’ Your essential household bills, 34.1% said ‘Worsened a little’ and 17.3% said ‘Worsened significantly’ = 51%
In response to the question ‘What do you think are the three most important issues that Government should have addressed today but didn’t?’, 70% said ‘NHS cuts’, 57% said ‘Care costs for the elderly’ and 54% said ‘Cost of energy.
In response to the question ‘How do you feel about the following which were announced in today’s Budget?’ 31% were ‘Very satisfied’ about Increasing the personal allowance to £10,8000, 48% were ‘Very satisfied’ with the fully flexible ISA, 30% were ‘Very satisfied’ with the help to Buy ISA and 42% were ‘Very satisfied’ with the new Savings allowance – first £1,000 of savings will now be tax free.
In response to ‘Have you done any of the following in the last 12 months to help cut the cost of living?’, 53.7% said ‘Cut down on what you spend on food’, 56.9% said ‘Cut back on your energy/hot water usage at home’, 21.2% said ‘Cut back on healthcare (e.g Dentist appointments, prescriptions)’ and to ‘Have you done any of the following in the last 12 months to help cut the cost of living?’ Cut down on what you spend on food. Switch your energy supplier. Switch current account. Switch broadband provider. Switch mobile provider. Cut back on your energy/hot water usage at home. Switched your car insurance provider. Switched your mortgage provider. Cut back on healthcare (e.g Dentist appointments, prescriptions). Cut back on spending to keep fit (gym memberships, classes). Cut back on extras (eg. Sky etc.). Cut back on spending on children (clothes, school trips etc.). Spent less on going out with friends and family. Learnt to do more yourself (eg. DIY instead of calling a plumber etc.). We haven’t cut back financially in the last 12 months.
In response to the question ‘Do you trust the Government to make the best decisions for your financial future?’, 57% said ‘No.
In response to the question ‘As a result of today’s Budget, do you think that you will be financially better off, worse off, the same or do not know?’, 29% said ‘Better off’ and 20% said ‘Worse off’.
In response to the questions ‘How do you feel about the country’s finances’, last year 36% said confident, this year 40% said confident.
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