Eight in 10 think this January will be toughest yet financially, survey says

Cost of energy and groceries remain well above what people have been used to despite easing inflation

Eight in 10 people (84 per cent) expect this January to be the toughest yet financially due to Christmas spending added to debt from the cost of living crisis, according to a survey.

More than half of people (52 per cent) believe January is the time of year that causes the most financial stress, according to a survey by Nationwide.

This week was expected to be particularly tough, as people waited for their end-of-month pay packet.

More than half of people (51 per cent) blamed Christmas spending for January being a tough month, while more than two-fifths (43%) highlighted energy costs as a factor.

Added debt due to the increased cost of living was a significant issue for more than a third (37 per cent) of people.

More than 51 per cent of people said they would rather seek any assistance they needed in person than online.

More than half of people questioned (52 per cent) believe January is the time of year that causes the most financial stress (Getty Images)

Mandy Beech, director of retail services at Nationwide, said: “Because we still believe in face-to-face service and we have listened to our customers, we have committed to keeping all our branches open until at least 2026.

“We also have a branch manager in every branch, since for many there is no substitute for physical reassurance."

Censuswide surveyed more than 2,000 people across the UK in December 2023.

Inflation - or rising prices - was at 3.9 per cent for the year to November, compared with 10.7 per cent the previous year, according to the Office for National Statistics.

But millions continue to feel the pinch as inflation remains above the Bank of England’s target of 2 per cent.

Analysts say the average household is still paying more for everyday essentials than they were at the end of 2021.

A separate survey conducted by Deltapoll for Eastern City Business Improvement District (ED BID) shed light on heightened concerns about mental health among young professionals in London, particularly in the months of January and February.

The survey, which included over 750 Londoners, 17 per cent of which were City workers, revealed concerning trends in mental health and wellbeing.

48 per cent of respondents aged 18 to 24 and 49 per cent aged 25 to 34 expressing increased worry during this period.

The survey found that 40 per cent of Gen X and Millennials believe their work performance is affected by the state of their mental health.

In response to these concerns, the EC BID is launching the RECHARGE 2024 campaign, a year-long campaign to help tackle the issues of mental, physical and environmental wellbeing for workers in the City of London.