1.2 MILLION PEOPLE WHO LIVE IN THE WALES DO NOT FEEL CONFIDENT MANAGING THEIR MONEY

• 47% of people (1.2 million) who live in Wales do not feel confident managing their money – compared to the UK average of 45%
• 53% of people who live in Wales with bills or credit commitments struggle to keep up, are falling behind or have fallen behind with their commitments
• The Money and Pensions Service (MaPS) Financial Wellbeing Survey gives a snapshot of financial wellbeing in Wales
• As people feel increasing cost of living pressures, MaPS encourages people to seek free guidance from MoneyHelper to help find a way forward with their money and pensions

Almost half (47%) of people who live in Wales do not feel confident managing their money according to new research from MaPS – which provides a snapshot of financial wellbeing across the UK.

The research from MaPS’ Financial Wellbeing Survey shows that parents, particularly single parents, who live in Wales are feeling much less confident about their finances than before the pandemic (56% in 2018 versus 82% in 2021). The research also shows:

·         Over half (53%) with bills or credit commitments struggle to keep up, are falling behind or have fallen behind with their commitments – compared to the UK average of 50%

·         One fifth (20%) often use a credit card, overdraft or borrow money to buy food or pay bills because they’ve run short of money – compared to the UK average of 17%

·         Over a quarter (29%) couldn’t pay an unexpected bill of £300 from spare money or affordable borrowing – compared to the UK average of 24%

·         Over half (59%) of working age people do not have plan for their finances in retirement – compared to the UK average of 52%

MoneyHelper is encouraging people to seek help if they are worried about money or if they simply want to speak to someone about their finances. MoneyHelper offers bilingual support for a range of money matters, including tools such as the Bill Prioritiser, as well as guidance on how to maximise your income, understand what benefits you might be entitled to, how to manage your money and how to access free expert debt advice.

The research from the Financial Wellbeing Survey also highlights the importance of planning for the future. Six in ten (60%) people who live in Wales said that they save every month or most months and four in ten (43%) working age people said they understand enough to make decisions about retirement.

Lee Phillips, Wales Manager at the Money and Pensions Service, which provides the MoneyHelper service, says: “This is a challenging time for many people in Wales dealing with the impact of the pandemic on their finances and now cost of living pressures. This research tells us that on top of these pressures, four in ten people do not feel confident managing their money.

“We know it can be hard, but if you have money worries it’s best to get help as soon as possible to avoid problems spiralling out of control. Whether you are struggling to keep up with bills, have already fallen behind on payments or you want to talk to someone about your pensions, you can receive non-judgemental, free support from our specialists at MoneyHelper on 0800 137 7777 or by visiting www.moneyhelper.org.uk. MoneyHelper also offers bilingual support on 0800 138 0555 or by visiting www.helpwrarian.org.uk.”

MoneyHelper provides the following tips on how to manage your money, particularly if you have money worries at this time:

1. Pay your bills in the right order. Make sure to pay priority bills and debts such as council tax, mortgage/rent and energy payments before other debts. Falling behind on some bills, such as Council Tax can be quite serious as they could take you to court – so it’s important to know which bills to pay first.
2. Check what benefits or support you are entitled to. Our guide to living on squeezed income on the MoneyHelper website can help you identify which benefits you’re entitled to, or other forms of support.
3. Pension Credit. Many are also missing out on Pension Credit which is the most underclaimed benefit in the UK and can help pensioners make savings on bills. You must have reached state pension age to qualify and you can find out if you’re eligible via the gov.uk website.
4. If you are already missing payments, seek debt advice right away. Free debt advice works. Our research found that three quarters of people who seek help feel more in control after getting debt advice. You can use the Debt Advice Locator Tool to find a free and confidential debt adviser in your local area.

At MaPS, we encourage people to be more open about their finances by having conversations about money. Our annual awareness campaign Talk Money Week encourages people to be more open about money with their friends and family. Talk Money Week will take place this year from Monday 7 November 2022 and the theme of this year’s campaign is credit. The awareness week is an opportunity to start building money conversations into everyday life.

For more information and tools to support with money problems and guidance on dealing with debt, visit www.moneyhelper.org.uk.