Cardiff, United Kingdom – Hodge, a UK bank established in 1965 is offering a range of saving accounts and mortgages, is excited to announce the creation of its new cost of living hub designed to provide information and support to those affected by the current cost of living crisis.
After completing comprehensive research into the impact of the current cost of living crisis, Hodge wanted to offer customers an easy to navigate hub with key resources, such as the National Debtline, Payplan, Stepchange, Citizens Advice, and Moneyhelper, as well as its own informative blogs and articles, to support them during this difficult financial period.
A spokesperson from Hodge said: “We’re here to support our customers through the cost of living crisis. From top saving tips on social media to an information hub for those who might be struggling financially, you can find the information you need using our range of helpful links.”
The Impact of the Cost of Living Crisis
To offer cost of living support to those affected, Hodge has conducted research into the cost of living crisis, finding that emergency fund savings are on the rise and people are saving specifically for the cost of living, particularly those under 50. So, what is the cost of living crisis?
The cost of living crisis in the UK means everyday essentials like groceries, energy and fuel have gone up in price quicker than the average household income is increasing. The UK saw a sharp increase in inflation in 2021 and 2022 post-pandemic, reaching a peak of 11.1% in October 2022.
In Hodge’s research, which was a study involving 2,000 people aged 21-55+ with incomes ranging from £18k to more than £100k who were asked a series of questions relating to their spending habits, savings, and feelings towards the cost of living crisis, the bank found:
- 63% of participants have reduced the money they spend on dining out
- 57% have spent less on luxury goods
- 55% are spending less on groceries
- 45% have reduced their spending on socialising
- 48% have cut spending on holidays
Additionally, Hodge observed a significant proportion of participants were consistently saving for an emergency fund, with 54% creating an emergency cost of living savings pot compared to 58% a year ago. On the whole, 58% of people were concerned about rising interest rates and subsequent loan repayments, while 58% planned to move their savings to get the best return.
While the cost of living crisis affects everyone in the UK, Hodge discovered age, gender, and income impact the amount people are saving and how worried they are about their finances.
Overall, 61% were concerned about the performance of the UK’s economy. Those under 50 years were significantly more concerned than those over 50, and women were 11% more likely to be worried than men. Significantly, the bank also found:
- 66% of people are concerned about managing their finances
- Men are more confident than women when it comes to their finances
- Under 20s are most likely to cut back on their grocery shopping
- 61-70 year olds are most concerned about energy prices
Another factor that played a crucial role in the impact of the crisis was the location of the participants, with different places affecting people in different ways. The results highlighted for Hodge that almost 1/3 of those living in London are worried about house prices, with 22.5% of Londoners saving more for house deposits. Other findings displayed:
- 38% of Londoners are more likely to save for holidays than other regions
- 61% of Scots are more likely to save for emergencies
- 75% of those living in Wales are more concerned about the cost of everyday items
- 70% of those living in Northern Ireland are worried about fuel prices
The different prices set by energy suppliers in each region also played a role, with Hodge discovering those living in North West England were more concerned about energy prices, and due to this, a huge 80% of those people were more likely to reduce their energy usage for financial reasons.
To find out more about Hodge and its cost of living hub, please visit the website at https://hodgebank.co.uk/.