LONDON, April 6 (Reuters) – The financial situation of British households is now the most precarious since the trough of the COVID-19 pandemic in the second quarter of 2020, due to the soaring cost of living, according to a survey published on Wednesday .

Scottish Widows pensions, part of Lloyds Banking Group, said 60% of households had been unable to save more during the pandemic and households that had savings were now depleting them at the fastest rate. fastest in nine years.

“Over 70% of households will need to dip into their savings over the next 12 months to meet their growing expenses,” said Emma Watkins, chief executive of Scottish Widows.

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UK consumer price inflation hit a 30-year high of 6.2% in February and the government’s fiscal watchdog forecasts it will hit a 40-year high of 8.7% towards the end of this year, due to soaring energy costs and broader price increases.

The budget watchdog also said the fall in real incomes would be the biggest since records began in 1956 as wages failed to keep pace with prices.

Polling firm Ipsos MORI polled 4,500 people aged 18 to 64 between January 27 and March 8 for Scottish widows.

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Reporting by David Milliken Editing by William Schomberg

Our standards: The Thomson Reuters Trust Principles.

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