PracticeConsultingMore than half of UK households in debt

More than half of UK households in debt

More than half of the nation's households have fallen into debt for the first time in UK history, a recent study by Big Four firm Ernst & Young has revealed.

Link: Insolvency firms find work in retail sector

E&Y’s quarterly Retail Financial services monitor, published yesterday, also found a significantly higher proportion of older consumers overcoming their reluctance to take on debt.

The study showed that consumer spending is continuing to mount, despite a drop in disposable income. Philip Middleton, head of retail banking at E&Y, said the trend was worrying.

‘Consumer spending is continuing unabated despite the fact real household income is flat. People are funding their spending habits through higher and higher levels of debt,’ he said

But Middleton added that consumers were beginning to appreciate the need for long-term saving. ‘The perpetual headlines about a “pensions crisis” in the UK are beginning to have an impact on the public, especially if the savings vehicles they are thinking about are perceived as low risk and cash-based, hence the recent success of premium bonds.’

The firm predicted there would be boom in equity release products for both consumption and pension provisions, as upcoming regulation would accelerate around £2trillion in ‘unused collateral.’

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer