As the cost of living crisis continues to bite, almost one in five Londoners are financially vulnerable, new research by Outra reveals.
Inflation hit 9.9 percent last month and the Bank of England expects this to peak at 11 percent in October. Those who are financially vulnerable are already seeing double-digit inflation hit their pockets, as both energy bills and rising food prices form a larger part of their budget than better-off households.
Analysis by Outra, a data science company, shows that roughly 700,000 households out of London’s near 4 million homes are financially vulnerable on the basis that that household earns less than £30,000 a year and has little to no savings.
One in 10 of those financially vulnerable are retired, while one in five households are self-employed. Four out of 10 financially vulnerable households have one or more children, the research also finds.
Three-quarters of London’s financially vulnerable live in houses or flats worth under £450k, below the average London house price of over £500k, according to Outra.
Peter Jackson, Chief Data Officer at Outra said:
“Our latest research shows that almost one in five of London’s nearly 4 million households are financially vulnerable. As energy bills and prices of food and other everyday necessities continue to rocket up, there will be increased calls to the government to roll out a support package to get these vulnerable households through what is looking likely to be a tough winter. The tightening of their belts will impact on consumer spending – which accounted for 59% of GDP in 2021 – and have a knock-on effect on London’s businesses and the wider economy.”
