Unemployment falls but JSA claims rise
However, the number of people claiming Jobseeker’s Allowance in June rose by 24,500 to 1.52 million – the biggest such increase in two years.
Commenting, John Pollock, group board director for Legal & General’s Risk businesses said: “Today’s announcement is unlikely to be a surprise but although we saw that inflation has eased slightly both still add to the current financial pressures on UK households.
“This was reflected in Legal & General’s latest MoneyMood survey results. The survey highlighted just what a precarious position UK households are in, struggling to balance their household budgets with the continuing threat of unemployment and ongoing inflationary pressures.
“Our research indicated that almost 12 million households are struggling to make ends meet. For the 40% of those surveyed that are in full time work, nearly two fifths of them, 38%, advised that their earnings were covering their bills and debts but without any extra left at the end of each month. An additional 10% stated that their bills and debts were more than they earned and 29% had no savings to fall back on.
“Around 51% of those in full time work also said that they were paying off a mortgage, so with household finances so finely balanced, if they should lose their job or find they were unable to work due to illness or injury, their financial position could quickly become extremely difficult without some form of financial support as back up. This is where insurance cover, such as mortgage payment protection, income protection or critical illness cover comes into its own and provides that so important financial cushion.
“With the financial outlook not looking as if it will get any better in the near future we appreciate it is difficult but putting aside some of the precious household budget to protect themselves with insurance cover could be a future financial ‘life saver’.”