FCA suggests half of individuals in the UK are ‘financially vulnerable’

FCA suggests half of individuals in the UK are ‘financially vulnerable’

A survey carried out by the Financial Conduct Authority (FCA) has suggested that 50% of individuals in the UK are ‘financially vulnerable’, with many having to make use of loans in order to pay bills and make ends meet.

Image result for financially vulnerable uk adultsAccording to the FCA’s Financial Lives Survey, 25.6 million UK adults ‘display one or more characteristics that signal their potential vulnerability’.

The FCA found that 13% of individuals aged between 25 and 34 are in financial difficulty, whilst single parents aged between 18 and 34 are the most likely to use high-cost loans.

In addition, 24% of UK adults stated that they have ‘little or no confidence’ in managing their finances, with a further 46% of individuals reporting that they have ‘low knowledge’ of financial issues.

Meanwhile, only 35% of those aged between 45 and 54 have thought about how they will manage financially once they retire.

Commenting on the findings, Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said: ‘Just because individuals could be vulnerable doesn’t necessarily mean they will experience actual harm, but these results help regulators and firms alike to understand where we should target our efforts.’

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TUC calls for ‘bold rise’ in minimum wage

07 Nov 2013

The TUC has called for a ‘bold rise’ in the national minimum  wage (NMW) next year, in its submission to the Low Pay Commission.

According to the organisation, if the minimum wage had kept  pace with price rises since 2007, the annual salary of a full-time worker in  receipt of the NMW would have been £770 higher this year.

The NMW rose by 1.9% in on 1 October, bringing the main  adult rate to £6.31 an hour.

However, the TUC argues that the NMW must increase by more  than the rate of inflation or average earnings growth, in order to avoid  putting further financial pressure on low-paid workers.

TUC General Secretary Frances O’Grady said, ‘With  hard-working families all around the UK facing cuts to their benefits and tax  credits, the minimum wage is becoming even more of a vital lifeline, and at the  very least must keep pace with inflation and earnings’.

‘As the economic recovery strengthens there will be more  capacity to increase minimum wage rates in 2014, and the government has a real  chance to be more ambitious about raising the rates’.