2007
(21/11/2007) 15.6 million adults suffer emotional and physical effects of money problems, yet terrorism and immigration top the social issue league table
Money worries concern UK adults more than any other social issue, over and above terrorism, immigration, climate change and gun crime, according to a new report from AXA. However, despite the fact it worries more adults individually than any other social issue, as a nation we class terrorism, immigration and gun crime of greater social concern.
AXA believes that money problems are a genuine social issue worthy of much greater attention from policy makers than it currently receives. AXA’s research found that some 43% of adults said money worries is the social issue that has the greatest impact on them, yet only 21% of adults cited it as having the greatest impact on the UK as a whole.
| Social issues in order of their impact on the UK? | Social issues in order of their direct impact on YOU? |
|---|---|
| 1 Terrorism | 1 Money Worries |
| 2 Immigration | 2 Immigration |
| 3 Gun Crime | 3 Terrorism |
| 4 Money Worries | 4 Climate Change |
| 5 Climate Change | 5 Gun Crime |
| 6 Drink Driving | 6 Drink Driving |
| 7 Obesity | 7 Obesity |
| 8 Teenage pregnancy | 8 Teenage pregnancy |
The research comes as AXA launches My Budget Day, a national initiative designed to encourage Brits to spend an hour a month on their finances. A dedicated website has been created for consumers which they can use at home or at work to take control of their finances. This link will take users to simple tools which can help them take control of their debt, plan their budget, make decisions about retirement funding and think about how to improve their savings.
Due to the seriousness of the issue AXA has been working with the CBI, Unite and other business leaders to encourage UK plc to give all employees an hour off work to spend on their finances. It is estimated that around 250,000 employees will be spending an hour of today’s working day on their personal finances.
To highlight the fact that money problems is as much a social issue as those others cited, AXA explored the impact that individuals’ money problems have on their family and friends as well as themselves. The research found that an incredible 82% of people who agree to help friends and family to keep on top of their money worries have suffered as a result.
Steve Folkard of AXA commented, “Money worries need to be recognised as a major social issue. The research highlights the impact money problems is having on millions of people – a far greater number than those who have been impacted directly by either gun crime or terrorism – yet it is still not treated by individuals or the government as a problem worthy of the level of media attention given to these other issues.
“With My Budget Day we are trying to highlight to people the need to take action. Unlike the other social issues, there is a solution, but until people recognise the need for something to be done we will simply spiral further and further into debt.”
According to AXA many people who are struggling financially turn to friends, family, colleagues and acquaintances for help. But until now nobody has studied the so-called ‘passive’ effects of helping someone in financial need.
The AXA research shows people with money worries have a circle of dependents, some of whom may end up falling victim to problems of their own as a result of offering help. For example, 26 per cent of people who have helped others with money have actually fallen into debt themselves. 39 per cent has reduced their savings pot and one in five has handed over cash intended for someone else.
And it’s not just financial woes affecting passive sufferers of money worries. Other effects include emotional problems, relationship issues and even medical difficulties as people are faced with the realities of other people’s failings. 8 per cent of respondents even claim to have had to fend off the bailiffs on behalf of someone else while 3% have suffered the threat of violence.
| If you have helped someone else with their financial difficulties, how did it affect you? | % of people who have helped others | No. of people in GB |
|---|---|---|
| Forced to reduce savings | 39 | 7.37 million |
| Went into debt myself | 26 | 4.93 million |
| Suffered emotionally | 23 | 4.356 million |
| Had to give away money that should have been spent on other people | 20 | 3.74 million |
| Relationship problems | 17 | 3.16 million |
| Couldn’t provide for my children in the way I would like | 11 | 2.13 million |
| Had to fend off the bailiffs on behalf of someone else | 8 | 1.43 million |
| Address has been blacklisted despite not having money problems | 5 | 944,000 |
| Suffered violence/threat of violence | 3 | 645,000 |
| Children suffered emotionally | 2 | 446,000 |
| Went into mortgage arrears | 2 | 448,000 |
Steve Folkard added, “We all know about the debt mountain, house price rises and the state of the financial markets. But this is the first time that someone has identified how people in serious financial need can affect those around them as much as they can themselves.
We want the government, media, the industry and all individuals to recognise money as a major social issue and work together to try and improve the situation which is clearly impacting millions of people in a very negative way.”
Half of UK adults (49%) accept that the responsibility for tackling the money worries of the UK is with the individual. However, 26% believe it lies with the Government, and a further 24% claim it is the responsibility of the financial services industry at large to keep the finances of the nation on track.
- Ends -
Notes to editors
* TNS conducted research online with 1003 GB adults from 13th – 15th November 2007
My Budget Day follows AXA Avenue, the name given to AXA’s year long financial social experiment which ran from October 2005 to October 2006 using 20 households in Brighton. Half of the households were given access to independent financial advice while the other half were left to their own devices.
The findings revealed that the ten households that received financial advice were collectively £50,000 better off at the end of the experiment, with massive savings increases and encouraging levels of debt reduction. And the participants were able to make these savings by spending just one hour a month on their finances. In contrast, the households left to their own devices actually got collectively poorer. They frittered away a quarter of their savings and the group saw a three per cent reduction in their net wealth.
More information
If you are a journalist and require further information contact one of our media team.
About AXA
AXA UK is a part of the AXA Group. AXA Group is a worldwide leader in Financial Protection. AXA's operations are diverse geographically, with major operations in Western Europe, North America and the Asia/Pacific area. For full year 2006, IFRS revenues amounted to €79 billion and adjusted earnings amounted to €5,140 million.
The AXA ordinary share is listed and trades under the symbol AXA on the Paris Stock Exchange. The AXA American Depository Share is also listed on the NYSE under the ticker symbol AXA.
Our previous company performance is not a guide to how we may perform in the future.