On January 9, James Hall had this follow-up:
Around six million households would be unable to survive for more than five days if they stopped being paid, such are the low levels of savings among Britons, new research shows.
A new report from First Direct, the bank, warns that one in three UK households have less than £250 in accessible savings. A fifth of all households have no savings at all.
The bank said that £250 is the equivalent of three days’ average monthly household take-home pay. With average monthly outgoing currently at £1,536, these savings would last just five days.
If we put the average household size at 2.5 people, that means that, out of 60 million living in Britain, 2.5 million are on the verge of losing their homes, and 15 million, or 25% of the population, risk having to cut on their basic needs, food and heating, if they hit even the slightest speedbump.
And what are the chances this situation will improve any time soon? It doesn't look good; in fact it looks set to worsen. While there's no lack of denial, an increasing number of voices admit that the British economy has already slipped back into recession.
Britain lost 20% of GDP from 2007 - 2011. Against this backdrop, and don't let's forget the over-600% debt to GDP ratio just for Britain's financial sector, which will inevitably lead to more - calls for - bailouts, what is the Cameron government's response?
First of all, austerity measures. Which will hit those people very hard who are in the bottom 25% or so who already have no savings, no nothing, to fall back on. And which will also lead to a rise in unemployment, which in turn will exacerbate the vicious problem circle...
http://theautomaticearth.blogspot.com/
16 jan
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