The Financial Position of British Households: Evidence from the 2010 NMG Consulting Survey

13 Pages Posted: 26 Dec 2010

See all articles by Mette Nielsen

Mette Nielsen

Bank of England

Silvia Pezzini

Hong Kong Monetary Authority

Kate Reinold

Bank of England - Monetary Analysis

Richard Williams

Bank of England - Monetary Analysis

Date Written: December 13, 2010

Abstract

The UK economy has begun to recover over the past year but households’ financial positions remain under strain. Elevated unemployment, weak earnings growth and restricted credit availability still pose a problem for some households. But the low level of Bank Rate has continued to bear down on mortgage interest payments for some borrowers. This article examines evidence from the latest survey of households carried out for the Bank by NMG Consulting in late September, which shows how these and other changes have affected households’ budgets and spending decisions. The burden of unsecured debt was higher than in the past and concerns about debt levels had increased, leading some to save more in order to reduce indebtedness. A special set of questions this year showed that households’ awareness of the fiscal consolidation measures was quite high. They were concerned about the impact on their finances, although the majority had yet to take any action in response.

Suggested Citation

Nielsen, Mette and Pezzini, Silvia and Reinold, Kate and Williams, Richard, The Financial Position of British Households: Evidence from the 2010 NMG Consulting Survey (December 13, 2010). Bank of England Quarterly Bulletin 2010 Q4. Available at SSRN: https://ssrn.com/abstract=1730186

Mette Nielsen

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Silvia Pezzini

Hong Kong Monetary Authority ( email )

3 Garden Road, 30th Floor
Hong Kong
Hong Kong

Kate Reinold (Contact Author)

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

Richard Williams

Bank of England - Monetary Analysis ( email )

Threadneedle Street
London EC2R 8AH
United Kingdom

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