Three quarters of Brits have been hit with an unexpected expense in the past year, according to figures from Bright Grey’s Financial Safety Net report.
30% of UK adults have experienced an unexpectedly expensive bill – such as a utility or phone bill – in the past year, making this the most common financial surprise. This was followed by car repairs (27%) and replacing or repairing a household appliance worth more than £100 (19%).
The most expensive surprise costs came courtesy of those closest to home; 11% have been asked to lend more than £100 to a loved one at an average cost of £1,091.
Unexpected expenses in the last 12 months:
| Unexpected expense | % of UK adults | Average cost among those who incurred each expense |
| Costly bill | 30% | £196 |
| Car repairs | 27% | £432 |
| Replacing household appliance over £100 | 19% | £509 |
| Replacing household appliance under £100 | 18% | £91 |
| Household repairs | 12% | £820 |
| Loaning money in excess of £100 | 11% | £1091 |
| Vet bill | 11% | £328 |
Jennifer Gilchrist, senior product development manager, Bright Grey said: “Unexpected expenses can come in all sorts of sizes, from the relatively everyday through to the more costly. These can leave people worried about how they will afford them.
“Some families may be able to rely upon their regular income to make ends meet, or have savings pots to dip into – yet the rising cost of living means that there are households who will have no financial safety net to rely upon at all. These unexpected expenses can be worrying enough even for those in work, without considering how they might cope if their regular income were to cease.”
Men feel more financially secure, with the belief they could afford around £1,000 more than their female counterparts (£3,987 compared to £2,837). However, 13% of adults admit to living on a shoe-string budget and would have no extra money to pay for a surprise expense.
In addition, 32% of those who experienced unexpected expenses have used credit to foot the bill in the past, with 23% opting to use their credit card and 15% straying into their overdraft. 10% have turned to family or friends for financial assistance in making ends meet.
24% who incurred unexpected expenses significantly reduced their expenditure to pay for these costs. Financial sacrifices Britons would be willing to make include spending less on non-essentials (39%), followed by socialising (38%), and holidays (33%). Just under one in five (17%) would cut back on the amount they currently save.
However, despite the pressure on family finances, very few have a contingency plan should they find themselves without a regular income because of illness or unemployment; just 11% of respondents have critical illness cover, only 8% have income protection and only 4% have unemployment cover.
Gilchrist added: “For a small contribution each month, people can safeguard their financial future by investing in a protection product which will ensure they have a financial safety net in place should the worst happen.
“This safeguard can mean the difference between families continuing to live comfortably during a time of extreme difficulty and facing real financial distress.”
