The Financial Lives January 2023 report by the Financial Conduct Authority (FCA) delves into the financial challenges and experiences faced by UK adults amid the rising cost of living. The report uncovers the increasing number of people struggling with payments, the impact on mental wellbeing, and the various ways consumers are navigating these financial difficulties. It also highlights the role of the financial services industry in providing support and shares positive stories of consumer support outcomes.
Find more at our training here
- The number of adults missing payments increased by 1.4 million from May 2022 to January 2023.
- 29% of UK adults with a mortgage and 34% of renters experienced payment increases in the same period.
- 13% of insurance or protection policyholders cancelled and/or reduced cover to save money.
- Over half of UK adults felt more anxious or stressed due to the rising cost of living.
- The report includes real-life examples demonstrating the impact on people’s lives.
- The FCA has set clear standards for firms to help customers in financial difficulty.
- Consumers are encouraged to contact lenders or insurance providers for support.
- The report shares positive stories of dealings with firms and proactive support.
- The industry plays a vital role in supporting people during these challenging times.
- The full Financial Lives 2022 survey report will be published later in the year.
- The survey provides insights for the FCA, lenders, insurance companies, and other interested parties.
- The FCA is taking assertive regulatory action where firms fail to meet standards.
- 1.4 million more adults missed payments in January 2023 compared to May 2022.
- 21% of adults described keeping up with bills and credit commitments as a heavy burden.
- 54% of UK adults felt more anxious or stressed due to the rising cost of living.
- 29% of mortgage holders and 34% of renters faced increased payments.
- 13% of May 2022 policyholders cancelled and/or reduced insurance cover.
- 72% of UK adults felt that keeping up with bills was a burden.
Key Take Aways
- The rising cost of living has significantly impacted the financial stability of UK adults.
- Many are struggling with payments, leading to increased stress and anxiety.
- The financial services industry has a crucial role in offering support and solutions.
- Proactive communication with lenders and providers can lead to positive outcomes.
- The FCA is actively regulating and setting standards for consumer support.
- Consumers have shared both struggles and positive experiences with financial firms.
- The report serves as a valuable insight into the financial lives of UK consumers.
- The full findings and detailed analysis will be available in the upcoming report.
- Financial resilience and seeking support early are emphasized as important.
- The survey explores various coping mechanisms and adjustments made by consumers.
- The FCA continues to monitor and address the challenges faced by consumers.
- The insights gained are instrumental for the FCA and financial institutions in formulating strategies and support mechanisms.
RO-AR insider newsletter
Receive notifications of new RO-AR content notifications: Also subscribe here - unsubscribe anytime