Three weeks from loss of income to benefits reliance

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A new report by financial services company, Legal and General, claims that within three weeks of losing their income the average Northern Ireland family will be reliant upon state benefits and friends and family alone for financial support, once their savings run out.

This ‘Deadline to the Breadline’ in Northern Ireland has decreased by 8 days since the company’s last report – from 27 to 19 days.

The company claims: “With over a third (35 per cent) of the UK population not having any money put away, this could potentially see a significant number of people on the breadline tomorrow, in the event of an unexpected shock to their income.

“With some experts expecting interest rates to rise by the end of 2015, the report also found that a 2 per cent increase in mortgage interest rates would move the typical household with a mortgage one day closer to the breadline.

“Even a one per cent rise would mean households would no longer be able to save each month and would have to change their spending habits, or rely on existing savings, to make ends meet.”