Between 14 September and 8 January 2023, 50% of adults who said they were behind on their energy bills also said they had significant levels of worry, compared to 33% of those who weren’t. They reported lower levels of satisfaction with life, happiness, and emotions that the things they did in life were meaningful more frequently than people who weren’t behind on their expenses.
Adults who acknowledged borrowing greater amounts or utilizing credit than normal as well as those who had trouble paying their rent, mortgage, or utility bills showed similar patterns.
Compared to a year ago, one-fifth of adults say they are borrowing more money, and fewer say they plan to save money in 2023.
Between 25 January and 5 February 2023, 22% of British adults, or over 11.5 million people, reported borrowed more money or using more credit as a result of rising living expenses. Increased from 17% between January 19 and January 30, 2022, this is.
Over the past year, people’s expectations for their capacity to save money have decreased. More than 42 percent of individuals, or over 22 million people, said they did not anticipate saving any money in the upcoming year between 25 January and 5 February 2023. Comparatively, this is a rise from 36%. of those surveyed from 19 to 30th January 2022.
Early in 2023, 4 out of 10 adults stated they had no plans to make any financial sacrifices.
Great Britain, 19 to 30 January 2022 and 25 January to 5 February 2023. Percentage of adults indicating that they were borrowing a greater amount or using more credit compared to the previous year, did not anticipate to save any money in the following year, and were unable to afford an unexpected bill.
Renters, parents of kids who are dependents, and residents of Great Britain’s most impoverished districts tended to borrow and use credit more frequently.
Compared to prior winters, consumer spending patterns did not considerably change. Although people spent more money in the winters of 2022 and 2023 than in prior ones, fewer goods and services were available for consumers to buy. People’s ability to buy has decreased as prices have increased.
The wellbeing of those reporting them appears to be adversely impacted by these financial demands. People who are behind on their bills or are having trouble paying them report less joy and fulfillment in life as well as more anxiety than those who are in better financial standing. Similar patterns can be seen in people who borrow more money or use credit than normal.
The number of persons falling behind on their bills seems to be largely consistent despite these significant increases in expenses. Between 25 January and 5 February 2023, 6% of adults reported being overdue on their gas and electricity bills. The percentage is the same as it was in March 2022 when the question was initially posed.But over half of all persons (47%) who had gas or electricity delivered to their homes reported finding it extremely difficult or moderately difficult to pay their payments between 25 January and 5 February 2023.We have examined a bigger sample size than is feasible in a single survey wave using pooling data from September 2022 to January 2023.
Valerie, a 62-year-old client of Citizens Advice
Adults who were behind on their energy bills reported having a lower level of life satisfaction three times more frequently than those who were not. In comparison to 9% of persons who were not in arrears, nearly 3 out of 10 (28%) people who were indicated negative satisfaction.
A third of adults (33%) who were not in arrears and nearly half (49%) of those who were reported high anxiety scores.
Energy bill defaulters are more likely to have moderate-to-severe depressive symptoms. According to the Office for National Statistics (ONS) study of data from the fall of 2022, this is the case.
Adults who borrowed more money or used more credit were more likely to report feeling unhappy by a factor of two.
Between 25 January and 5 February 2023, 22% of individuals said that they had to utilize credit or borrow more money than they had to in the previous month. In comparison, 17% of individuals reported this between January 19 and January 30, 2022, which is a significant increase.
Even though this may not always represent persons with debt problems, those who frequently borrow money or use credit may be feeling greater financial strain.
The majority of the people we assist have little to no savings, minimal room in their budgets to accommodate unforeseen expenses, and little to no flexibility.
Jane Tully, Money Advice Trust’s director of external relations
Between September 2022 and January 2023, 22% of adults who said they borrowed more money or used more credit reported being unhappy. This is more than double the proportion of adults (21%) who did not rely more on borrowing or credit.
The likelihood of reporting a high anxiety score was higher for individuals who were borrowed more than for those who were not.