West Midlands suffer highest monthly shortfall

The latest MoneyMood survey from Legal & General shows residents in the West Midlands are struggling the most to meet their bills from their monthly income, with an average shortfall of £108 a month.

This is £30 more than the typical shortfall experienced by households across the country, with the overall monthly figure rising by over £30m in the past three months.

Londoners are also feeling the pinch, with a typical £99 shortfall in their monthly budgets, the research said.

The East Midlands by contrast have the lowest typical shortfall in Britain at around £21, almost matched by Wales at £24.

The survey also showed 1m more households are under greater financial strain than at the start of the double dip recession eight months ago, with a fall in the number of “stable” homes that have money left over at the end of the months after paying bills and debts.

Mark Gregory, executive director of savings for Legal & General, said: “We estimate the nation’s monthly shortfall now stands at £244m each month.”

Ed Hodgson, director at West Midlands-based Iconic Investments, said: “People now don’t take enough personal responsibility, and the older generation in particular has stored up a big problem for their future through spending too much.

“Our clients recognise that in the good years, you have to save and invest.”