More than half of people feel poorer than they did five years ago, survey finds

More than half (53%) of people feel poorer now than they did five years ago, research has found.

Six in 10 (59%) people stated that they would expect the new government to prioritise introducing measures to materially enhance their personal financial wellbeing.

Two thirds (67%) of households believe that ways to make driving more affordable should be looked at, according to a survey of 6,000 people across the UK for Compare the Market.

Just over two fifths (42%) of drivers feel less able to afford motor insurance compared with five years ago.

In order to cover motor insurance costs, some people said they have cut back on holidays (27%), eating out (25%) and groceries (18%).

Despite recent dips in energy prices, six in 10 (61%) people surveyed did not feel confident that energy bills would be lower over the next year.

More than half (54%) of people surveyed believe reductions in mortgage costs should be a priority.

Guy Anker, director at Compare the Market, said: “There’s no doubt that the cost of living over the last few years has been incredibly tough for so many households around the UK, with over half feeling poorer today than they did five years ago.

“While it is recognised that events beyond any government’s control have significantly added to the difficulty in supporting households financially, it is nonetheless clear from our research that people want to see the new government actively do more to make them feel better off.

“However, while government action can help, we also encourage everyone to take proactive steps to help positively manage their finances.”

Mr Anker added: “Comparing products before purchase or renewal, and also regularly setting out a budget throughout the year, are two of the best ways to help save money and make the right choices for your specific needs.”