Press release -
Pay Day Countdown: 5 million workers face new monthly struggle
- One in four workers say their finances have had a negative effect on their health
- 15 per cent run out of money on a monthly basis and rely on credit cards, overdraft and savings to see them through
- 17 per cent stop checking their current account at some point during the month
At the end of the month, many of us have just been paid and are feeling flush, however within three weeks five million1 (17 per cent) of us will be struggling to pay for day-to-day spending ahead of pay day, and this is happening on a monthly basis, according to Post Office’s Current Account Footprint Report2.
The report highlights the financial tight-rope that many people face. 15 per cent of workers say they find themselves running out of money on a monthly basis, relying on credit cards, overdrafts and savings. This happens yearly for over four in ten people (41 per cent). Across the country, it is Londoners (39 per cent) who feel the most comfortable about relying on other sources of credit at the end of the month, compared to those in the West Midlands (25 per cent) and East Midlands (21 per cent).
Overall one in four workers (25 per cent) admits their financial situation has a negative effect on their health. Just over a quarter (27 per cent) state that lack of money in the lead up to pay day causes them all types of stress, while another quarter (25 per cent) say that they have had sleepless nights worrying about how they are going to cover costs in the weeks before pay day.
Many are now adopting a ‘head in the sand’ attitude; 17 per cent stop checking their current account at some point during the month. And the closer to pay day the more likely people are to stop looking at their balance with one in ten (10 per cent) workers no longer checking their balance in the third and fourth week from pay day.
John Willcock, Head of Current Accounts at the Post Office said: “It is a concern that we are becoming ‘pay day’ Britain, just counting down to the next pay cheque. However, the bigger worry is that so many workers are struggling to balance their income versus their outgoings every month. It is important to check your bank account balance frequently to help you keep in control of your finances.
“Keeping a close eye on transactions and budgeting month-on-month will help manage your money and make you feel more in control of your finances; especially important for those who say their financial situation impacts their health negatively.”
The report also reveals that having a payday buffer means just under one in ten (9 per cent) of us go on a spending spree every month. However, this splurge, usually at the beginning the month often results in people struggling to pay for day-to-day expenses by the end of the month. Those based in London (13 per cent) were most likely to go on a spree every month and subsequently struggle in the lead up to payday.
With the new Post Office current account customers can pop in to over 11,500 branches or at 2,200 ATMs.
Ends
158 per cent of UK adults are employed and have a current account. 58 per cent of the UK adult population (50,371,000 UK Adults 18+) = 29 million. 17% of 29 million = 5 million.
2Research conducted by Opium on behalf of Post Office via an online poll of 2,006 adults 9-12 July 2013.
Post Office Limited has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of many communities across the country. The Post Office has made a commitment to no more branch closure programmes. It provides around 170 different services and products spanning financial services including savings, insurance, loans, mortgages and credit cards. Post Office also offers Government services; telephony; foreign currency; travel insurance and mail services.
It serves around 18 million customers a week and half of all small businesses. 93% of the total population live within one mile of a post office and 99.7% within three miles. For many rural communities the post office is the only retail outlet. Post offices remain highly valued and trusted and are the focal point for many communities. For more information, please visit www.postoffice.co.uk
Contact - Carmel McCarthy
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About the Post Office
The Post Office (Post Office Limited) has an unrivalled national network of over 11,500 branches across the UK, more than all the high street banks combined, and sits at the heart of communities in Northern Ireland, Scotland, Wales and England. The Post Office has made a commitment to maintaining its network of branches at its current size and reach. It provides around 170 different products and services spanning financial services including savings, insurance, loans, mortgages and credit cards; Government services; telephony; foreign currency; travel insurance and mail services.
The Post Office serves over 17 million customers a week and a third of small businesses. Some 99.7% of the total population live within three miles of a post office and over 97% live with one mile of a post office. For many rural communities, the post office is the only retail outlet. Post Offices branches remain highly valued and trusted, and are the focal point of many communities. For more information, visit http://www.postoffice.co.uk/.
Please note the Press Office team can only deal with enquiries from the media. Unfortunately they do not have access to customer information so can not help with customer enquiries.
If you have an enquiry regarding any Post Office product or service please visit postoffice.co.uk or call 0845Local call rates apply. Call costs may vary depending on your service provider. Calls may be monitored or recorded for training and compliance purposes. 611 2970.
