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41% of Brits feel worse off financially than they did a year ago

08 July 2013

But nearly half (49%) of consumers aren't switching and saving on any of the 10 most popular financial products

41% of British consumers feel financially worse off now compared to a year ago, with one in five (20%) admitting to being seriously worried about their finances. Consumers aged 45-54 feel hardest hit with almost half (49%) saying that they felt worse off now than they did this time last year.
 
The research, commissioned by Gocompare.com, also revealed that 21% of UK adults found that their money usually ran out before the end of the month, 5% had considered taking out a pay day loan and 6% are relying on credit cards to make ends meet.
 
However, the research also highlighted that nearly half (49%) of consumers haven't switched any of the 10 most popular financial products in the last 12 months in order to get a better deal. In fact, nearly 9.5 million* consumers (19%) have NEVER switched ANY of them.
 
The list of the 10 most popular financial products comprised car insurance, home insurance, energy, mobile phone, broadband, landline, mortgage, credit card, current account and ISA or savings account.

  • 27% of people have switched car insurer in the last 12 months but 24% have not switched in the last three years
  • 23% have switched home insurer in the last 12 months but 33% have not switched in the last three years
  • 16% have switched energy provider in the last 12 months but 59% have not switched in the last three years

While the research shows that car insurance is the financial product most likely to be switched, it appears that Brits are most loyal to their bank, with 37% having had the same current account for all of their lives.

  • 12% have NEVER switched car insurance
  • 15% have NEVER switched home insurance
  • 16% have NEVER switched energy provider
  • 31% have NEVER switched mortgage lender
  • 37% have NEVER switched current account
  • 26% have NEVER switched ISA or savings accounts
  • 24% have NEVER switched mobile phone network
  • 23% have NEVER switched land line provider
  • 22% have NEVER switched credit cards
  • 25% have NEVER switched broadband provider

Savvy consumers who compare and switch regularly can save a packet. According to the latest figures, customers using Gocompare.com could save up to £247.07** on their car insurance, £122.47*** on their home insurance, and £449.19**** by switching their energy provider.
 
Claire Peate, customer insight manager at Gocompare.com, said: "Many Brits are feeling the pinch more than ever but there's a lot consumers can do to help their household budgets go further.
 
"No one looks forward to getting their insurance renewal or electricity and gas bill but comparing the deal from your existing provider with those offered by other competing companies can deliver major savings. A few minutes spent regularly checking your insurance deals, energy tariff, credit cards and phone tariffs could mean you spend less on the things you hate paying for leaving you more money to spend on the things you like."
 
-ends-

Notes to editors:

On 12th - 13th June 2013, Vision Critical conducted an online survey among 2,002 randomly selected British adults who are Springboard UK panellists. The margin of error-which measures sampling variability-is +/- 2.2%. The results have been statistically weighted according to the most current education, age, gender and regional data to ensure samples representative of the entire adult population of United Kingdom. Discrepancies in or between totals are due to rounding.

* The UK adult population is estimated to be 50,050,000, according to the ONS. 19% of survey respondents have not switched providers for any of a list of top 10 most popular financial products. 19% of 50,050,000 is 9.509 million.

** Based on independent research by Consumer Intelligence during 01 April 2013 to 30 April 2013. 51% of consumers could achieve this saving with Gocompare.com car insurance.

*** Based on independent research by Consumer Intelligence during 01 April 2013 to 30 April 2013. 40% of consumers could achieve this saving with Gocompare.com car insurance.

**** Based on customers who switched energy supplier for both gas and electricity (dual fuel) using the Energylinx-powered Gocompare.com platform during 1st January - 31st March 2013. At least 10% of people who switched saved £449.19 or more.