Nearly 11M Brits struggling to pay bills, debts, says regulator

LONDON

Nearly 11 million adults in Britain are struggling to pay their bills and debt, according to new official figures released on Wednesday that revealed a marked rise in people facing financial difficulties.

According to the Financial Conduct Authority (FCA), a notable rise of 3.1 million more people are encountering such difficulties in January compared to May last year, when the figure was 7.8 million.

"The number of adults who missed bills or loan payments in at least three of the last six months has also gone up by 1.4 million, from 4.2 million to 5.6 million over the same period," it also said.

Recognizing the strain on household budgets due to the escalating cost of living, the FCA urged individuals to seek assistance and support.

It said the increasing cost of living was significantly affecting the mental well-being of individuals.

In January, approximately 28.4 million adults in the UK, accounting for around half of the population, reported feeling higher levels of anxiety or stress compared to six months prior, attributing this to the rising cost of living.

Sheldon Mills, executive director of consumers and competition, emphasized the impact of the rising cost of living on people's financial state.

"Our research highlights the real impact the rising cost of living is having on people’s ability to keep up with their bills, although we are pleased to see that people have been accessing help and advice," he said.

"We will continue to act quickly to make sure financial firms help their customers who are facing financial difficulty or are worried they might be soon," he concluded.

In March, the annual consumer price inflation rate in the UK saw a slight decline to 10.1% but marked the seventh consecutive period in which the rate remained above 10%, while it has remained higher than the Bank of England's target of 2% for nearly two years.