INFOGRAPHIC
THE LACK OF INVESTMENT IS ANOTHER CRITICAL FACTOR CONTRIBUTING TO THE DECLINE IN PURCHASING POWER .
Among UK nations , Northern Ireland is the hardest hit , with 34 % of its population facing financial difficulties , followed by Wales ( 31 %), England ( 28 %) and Scotland ( 22 %). In England , the North East has the highest percentage of people struggling , with four in 10 residents affected . Even in London , the high costs impact one in four adults .
In response to these challenges , Britons are making significant adjustments :
• Fifty-three percent have cut back or delayed spending on smaller items like eating out , entertainment , subscriptions , clothing , toys , books , etc .
• Fifty-two percent have reduced household energy consumption
• Forty-eight percent have decreased their grocery spending
• Forty-one percent have scaled back or postponed major expenditures , such as holidays , cars and weddings
• Twenty-six percent are working longer hours , taking on overtime or pursuing additional jobs to earn extra income
The British also made changes on the financial side . One in four adults has been forced to dip into their savings or investments to cover daily expenses . Moreover , 44 % have stopped saving or investing entirely or have reduced their savings and investments – a 4 % increase compared to 2023 .
The lack of investment is another critical factor contributing to the decline in purchasing power . It is estimated that 13 million UK residents hold £ 430 billion in cash deposits but do not invest . The reasons ? Seventy-four percent say they cannot compare investment products effectively , and 43 % are afraid of losing their money .
A lack of knowledge and fear are preventing many savers from taking advantage of an important opportunity : preserving or increasing their purchasing power in the long-term . x
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