Financial Strain Surges in Europe, Particularly Among High-Income Households
Financial strain is rising across Europe, with a significant increase in adults missing loan or credit card payments, particularly among high-income households. Consumer confidence in the economy remains low, and millions of households are struggling to meet essential payments for housing and bills.
The proportion of missed housing, bill, loan, and yahoo finance payments has risen to 7.7 per cent, with water or energy bills (4.4 per cent) and rent (4 per cent) being the most commonly missed. This increase is particularly notable in Southern Europe, with Italy and Spain experiencing notable financial strain among higher-income households.
Lower-income households (up to £28,000, 9.5 per cent) and renters (13.9 per cent) are more likely to miss payments than higher-income households (7.4 per cent) and homeowners (3 per cent). Households with working-age parents (12.7 per cent) are also more likely to struggle than working-age non-parents (7.2 per cent) and pensioners (1.4 per cent). An estimated 2.2 million households are currently struggling to meet essential outgoings.
The rising number of missed payments and financial struggles among households, particularly in Southern Europe and among lower-income families, highlights the need for targeted support and policy interventions to help ease the burden on vulnerable households.
