Financial shock could bankrupt families

Almost a third of North-East households have enough savings to last just two weeks should they be hit by redundancy or job loss, new figures show.

Tuesday, 21st February 2017, 11:00 am
Updated Wednesday, 1st March 2017, 7:49 am
Brought to you by the Northumberland Gazette.

Analysis of household savings reveals little financial headroom and widespread lack of preparedness for unexpected loss of income.

According to the study involving 2,000 people, by Newcastle financial technology firm True Potential on behalf of Policy North, 31 per cent of households in the North East have just £500 or less of easily accessible savings.

These figures are among the highest in England, with more northerners falling in to the £0-£500 category for savings compared to all other regions where personal savings are higher.

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The research also shows that the monthly expenditure of an average household in the North East is £1,172, putting close to a third of households less than two weeks from bankruptcy should they lose their income.

Chairman of Policy North and northern entrepreneur, Stephen Purvis, said: “We know that the people of the North East are resilient, but these figures are particularly concerning.”