The average North East family is just over two weeks from the breadline, according a shocking report.
Statistics from the latest Deadline to the Breadline report show a bleak outlook for many households in the region.
The figures reveal that the average family will rely upon state benefits and friends and family for financial support – just 16 days after losing their income.
The figures from, compiled by financial services Legal & General, has increased by five days since the previous report was carried out in February.
Last night experts said that despite seeing a “heartening” improvement the report exposed the harsh realities of many households.
Mark Holweger, managing director at Legal & General, said:
“While it’s heartening to see an improvement in the financial situation of North East households, this fourth edition of our Deadline to the Breadline report exposes the harsh reality that many households in this region are on the brink and just weeks away from becoming reliant upon family, friends or the state.
“Despite improvements in the employment market, the fact remains that the average family in the North East is just over two weeks away from the breadline.”
Experts put the improvement down to an increase in savings levels, particularly among those aged between 18 to 24.
Nationally, the firm say that rock-bottom interest rates and falling real incomes have meant that households are saving £8.12 less per month on average in 2014 compared with last year.
More than a third of the country don’t have any savings, which could see a significant number of people on the breadline tomorrow, according to the report.
The figures also found that a 2% increase in mortgage interest rates would move the typical household with a mortgage one day closer to the breadline.
Even a 1% rise would mean households would no longer be able to save each month and would have to change their spending habits, or rely on existing savings, to make ends meet.
Other key findings found that the average UK household is 29 days from the breadline but the figure dropped to 14 days for those of working age.
Mr Holweger added:
“With new economic headwinds approaching and an interest rate rise on the horizon, now is not the time to be burying our heads in the sand.
“Talk of the economic recovery and an increase in consumer confidence could lead many people to revert back to their old habits when now really is the time to think about protecting their future.”
> Future ? What future ? Years more cuts and austerity ?
Source – Newcastle Evening Chronicle, 17 Dec 2014