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The financial position of British households: evidence from the 2010 NMG Consulting survey

Author

Listed:
  • Mette Nielsen

    (Bank of England)

  • Silvia Pezzini

    (Bank of England)

  • Kate Reinold

    (Bank of England)

  • Richard Williams

    (Bank of England)

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

  • Mette Nielsen & Silvia Pezzini & Kate Reinold & Richard Williams, 2010. "The financial position of British households: evidence from the 2010 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 50(4), pages 333-345.
    • Handle: RePEc:boe:qbullt:0037
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    References listed on IDEAS

    as
    1. Richard Button & Silvia Pezzini & Neil Rossiter, 2010. "Understanding the price of new lending to households," Bank of England Quarterly Bulletin, Bank of England, vol. 50(3), pages 172-182.
    2. Stuart Berry & Richard Williams & Matthew Waldron, 2009. "Household saving," Bank of England Quarterly Bulletin, Bank of England, vol. 49(3), pages 191-201.
    3. Tomas Hellebrandt & Silvia Pezzini & Jumana Saleheen & Richard Williams, 2009. "The financial position of British households: evidence from the 2009 NMG survey," Bank of England Quarterly Bulletin, Bank of England, vol. 49(4), pages 274-285.
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    Cited by:

    1. International Monetary Fund, 2011. "United Kingdom: Selected Issues Paper," IMF Staff Country Reports 2011/221, International Monetary Fund.
    2. Philip Bunn & Jeanne Le Roux & Robert Johnson & Michael McLeay, 2012. "Influences on household spending: evidence from the 2012 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 52(4), pages 332-342.
    3. Kate Reinold, 2011. "Housing equity withdrawal since the financial crisis," Bank of England Quarterly Bulletin, Bank of England, vol. 51(2), pages 127-133.
    4. Susan Lund & Charles Roxburgh, 2010. "Debt and Deleveraging," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 11(2), pages 1-30, April.
    5. Kishore Kamath & Kate Reinold & Mette Nielsen & Amar Radia, 2011. "The financial position of British households: evidence from the 2011 NMG Consulting survey," Bank of England Quarterly Bulletin, Bank of England, vol. 51(4), pages 305-318.
    6. Philip Bunn & May Rostom, 2015. "Household debt and spending in the United Kingdom," Bank of England working papers 554, Bank of England.
    7. Nadja König, 2016. "Personal Insolvency Dynamics in Germany and the UK -- A SUR-TAR Approach," Macroeconomics and Finance Series 201602, University of Hamburg, Department of Socioeconomics.

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