Two changes to make half of us feel poorer than we did five years ago

More than half (53%) of people feel poorer now than they did five years ago, the research found. Six in 10 (59%) people said they would expect the new government to prioritize introducing measures that would materially improve their personal financial well-being.

Two-thirds (67%) of households believe that ways to make driving more affordable should be looked at, according to a survey of 6,000 people in the UK for Compare the Market. Just over two-fifths (42%) of drivers feel less able to afford car insurance compared to five years ago.

To cover car insurance costs, some people said they cut back on holidays (27%), dining out (25%) and groceries (18%). The research was carried out by Censuswide in March – ahead of the general election.

Despite recent falls in energy prices, six in 10 (61%) people surveyed did not feel confident that their energy bills would be lower in the coming year. More than half (54%) of those surveyed believe that reducing mortgage costs should be a priority.

Guy Anker, director at Compare the Market, said: “There is no doubt that the cost of living over the past few years has been incredibly difficult for so many UK households, with over half feeling poorer today than they did five years ago .

“While it is recognized that events beyond any government’s control have added significantly to the difficulty of supporting households financially, it is still clear from our research that people want to see the new government do more to make them feel better.

“However, while government action can help, we also encourage everyone to take proactive steps to positively manage their finances.” Mr Anker added: “Comparing products before you buy or renew, and also setting a budget regularly throughout the year, are two of the best ways to help save money and make the right choices for your specific needs.”