Research for Indesser, a joint venture between the Cabinet Office and TDX Group, has shown that over half of Brits (53%) have improved their financial tracking and budgeting during COVID-19.
The pandemic has changed some people’s financial behaviour for the better, with 43% of respondents paying off more debt than before, and over a third (36%) saving more for retirement. Overall, 60% of people feel they are in control of their finances.
Almost three quarters (74%) of those surveyed said their income has either increased or stayed the same since the pandemic began, with average spending down on commuting, restaurants and recreation2 during lockdown contributing to this.
In contrast, 47% of people worry about their finances every day, up 4% since June 20203, and almost a quarter (24%) feel incapable of managing their finances, a rise of 5% since last summer.
Rhona Parry, CEO of Indesser, said: “The impact of COVID-19 on people’s finances continues to be highly complex and diverse. While it’s very encouraging to see people paying greater attention and exercising more autonomy over their personal finances, there is also a less positive and more alarming trend developing.
“The pandemic has exacerbated the sense of a two-tier debt society, where a significant minority are struggling to keep on top of their bills and effectively manage their finances. In this environment, where the end of forbearance measures looms and unemployment is expected to surge4, it’s vital for creditors to use informed data to identify financially vulnerable individuals and treat them with empathy and compassion.”