Household finances show green shoots
The research also shows the number of household that are “surviving” has increased by 7% since January 2012 to 8.8m.
Mark Gregory, L&G’s chief executive, savings, said: “Perhaps we are seeing the first green shoots of recovery in our household finances despite the continued pressure of inflation, which remained stubbornly high in December and the costs of utilities, such as gas and electricity bills continuing to rise last month.”
The biggest improvement in household finances was recorded in London where the average monthly shortfall was down £228 each month.
Yorkshire and Humberside and West Midlands both saw a £132 drop in the average shortfall whilst the East Midlands was down £67 per month.
The North West (down £38 per month), Wales (£21 per month lower) and the South East (down £15 monthly) have also show marked improvement compared to January last year.