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Over a third of Britons 'financially unprepared for emergencies'

POSTED: 17th January 2013
IN: Personal News
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Nothing reinforces the importance of personal savings than an emergency that causes a household to draw on its funds to stay afloat.

However, research from the Office for National Statistics (ONS) has uncovered a worrying trend among a number of British households that appear to be failing to save.

According to the official data published today (January 17th), there has been a ten per cent rise in the number of people in the UK who would be financially unprepared for a sudden expense.

The percentage of Britons who feel they would not cope in a financial emergency rose from 26.6 per cent in 2007 to 36.6 per cent in 2011, the ONS study showed. 

Commenting on the results, general secretary of the Trades Union Congress Frances O'Grady claimed these figures should "act as a wake-up call".

She said: "People have seen their living standards put under intense pressure over the last few years as bills have soared and real wages have fallen."

Despite the fact that it is increasingly hard for families to ensure they have money left over at the end of the month, it remains vital they have savings in place in the event of unforeseen expenses.

Ms O'Grady continued: "This large rise in the number of people unable to afford emergencies like a faulty boiler or leaky washing machine highlights the day-to-day challenges many hard-pressed families are facing."

Savings solutions like Variable Cash ISAs can ensure households make the most of their pots by protecting them from the tax man and interest rate fluctuations.

And because they are flexible, it means families can always dip into their accounts if an unexpected expense crops up and they need some quick cash.

It can also help them plan for nicer expenses, such as a break abroad, which the ONS said was becoming increasingly unattainable for a number of Britons.

In fact, the ONS research revealed 29.7 per cent of people could not afford the cost of an annual holiday in 2011 - up from 21.4 per cent in 2007. 

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