Half of UK consumers fear for their finances


Date: 21/07/2008 08:00


Research from comparison website Gocompare.com reveals the fear felt by UK consumers about the worsening economic climate. With household bills, fuel and energy prices spiralling ever upwards, 49 per cent of UK consumers say they are concerned or very concerned about their financial situation for the next year.

In the survey of over 1000 people, 60 per cent of respondents said that reducing their outgoings was currently their number one financial priority. Saving, moving house, re-mortgaging and putting money aside for a pension were way down the to-do list for this year and just 1 per cent of respondents said their first priority was to invest in the stock market.


What would you say is your biggest financial priority in the next 12 months? % of UK Consumers
Saving money on outgoings, reducing credit card and loan costs 60%
Depositing money in savings accounts/ISAs 19%
Investing in a pension 6%
Buying a house 4%
Remortgaging 3%
Investing in the stock market 1%
Other 7%

The nation's younger consumers feel most at risk from the economic downturn with nearly 65 per cent of 16 to 24 year olds concerned or very concerned about their financial situation compared to 39 per cent of over 55's.

Across the country, residents of Manchester and Southampton appear most worried with 58 per cent of respondents from both cities saying they were either concerned or very concerned about their finances.

Question - Looking ahead to the next twelve months, how do you feel about your financial situation? Concerned Very Concerned Total
Belfast 50% - 50%
Birmingham 40% 12% 52%
Brighton 38% 14% 52%
Bristol 40% - 40%
Cardiff 37% 11% 48%
Edinburgh 29% 10% 39%
Glasgow 38% 9% 47%
Leeds 39% 14% 53%
Liverpool 31% 11% 42%
London 35% 12% 47%
Manchester 43% 15% 58%
Newcastle 42% 4% 46%
Norwich 38% 7% 45%
Nottingham 35% 16% 51%
Plymouth 44% 7% 51%
Sheffield 28% 9% 37%
Southampton 45% 13% 58%
UK Average 38% 11% 49%

Rising food, fuel and energy prices are hitting household budgets hard with one third of British consumers saying that at least £8 of every £10 of their monthly income is now spent simply paying household bills, while 6 per cent of respondents said that just paying bills accounted for all of their income.

With 60 per cent of cash strapped Brits saying that reducing their outgoings is at the top of their 'to-do' list, over half of the consumers surveyed said that they will use a comparison website to help them find the best deal for their car insurance (55 per cent) and home insurance (52 per cent) in the next 12 months.

Hayley Parsons, Chief Executive of Gocompare.com said; "This research shows just how worried UK consumers are about rising prices and their personal finances. It’s never been more important to save money wherever you can and shopping around for your home and car insurance is a great way to try and save money."

Gocompare.com's home insurance service enables customers to input their details once and compare more than 25 insurance brands including The AA, Bradford and Bingley, Budget, Endsleigh, esure, Kwik-Fit, MoreThan, Pearl, Saga, Swinton and Zurich home insurance.

Ends

For further information please contact:
Lynsey Walden at Gocompare.com on 01633 654 055
Gordon at MAW Communications on 01603 505 845
Jason at MAW Communications on 07824 818 242

Notes to editors:

Research commissioned by Gocompare.com. Carried out with 1077 home owners between 06/05/2008 and 13/05/2008 by Opinion matters/Tickbox.net.

Gocompare.com launched in November 2006 to help people find the right insurance cover at the best price. It was founded by Hayley Parsons who has worked her entire career in the insurance broking and aggregator markets and was the first comparison site to focus on displaying product features rather than just listing prices. It was this philosophy that led to Gocompare.com becoming the first price comparison site to be invited to join the British Insurance Brokers Association (Biba) in May 2008 and helped force older comparison sites to change their 'quick quote' ways and stop using assumptions to calculate estimated figures.

Today, Gocompare.com provides one of the most comprehensive online car insurance comparison services in the UK as well as comparing home, motorbike, van insurance and breakdown cover. In March 2008, Gocompare.com won a Fast Growth Business Award. The judges complemented the management team for 'an extremely well-executed business with a clear USP and strong brand'.

Gocompare.com is authorised and regulated by the Financial Services Authority.



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