Half of UK adults are financially vulnerable, City watchdog finds

[al452]

Note how the Guardian headline has seamlessly converted the report's wording “display one or more characteristics that signal their potential vulnerability” to "are financially vulnerable". I think that's self-evident distortion, just dropping the "potential" bit (let alone "signal").

Then again "vulnerable" is an extremely popular word in the UK media this year, and nobody's ever precise about what it means, so maybe it's all meaningless, I don't know.

[pnutjam]

That's a feature of capitalism, not a bug. Can't leave money on the table.

[s_kilk]

It really is remarkable how efficient capitalism is at ensuring that proles are born with nothing and die with nothing. Every tiny bit of surplus beyond maintenance of the body is siphoned away into the pockets of the capital class.

[cup-of-tea]

What does struggle mean? Not be able to eat? Not be able to heat their house? Not be able to go out as often?

[whatok]

I looked at the FCA report and it's not defined anywhere.

[athenot]

I'm no economics expert so there's probably flaws in this idea but I've been wondering if we should levy a tax on usury (in its older interpretation). Looking at all the ways that money flows from the poor to the rich, it seems usury (in the form of profits derived from rent and interest) are large contributors.

This has traditionally been the position in Judaism, Christianity and Islam (and I think many tribal societies would greatly frown upon it).

[tonylemesmer]

My guess is that increased levies or taxes on loans would end up being paid by the borrower and make the loan even more expensive.

[Frye]

Over here in the States your rent increases just about every time you renew your lease.

[lotsofpulp]

In my experience, as long as you rent from small time owners who have day jobs, you can leverage being a good tenant into at least not raising rents for a few years. Sometimes even getting a discount, because that’s how much of a headache bad tenants are.

If you rent from a big rental company, then they can absorb that risk so you lose out on those savings.

[shubb]

The report itself is fairly easy reading.

https://www.fca.org.uk/publications/research/understanding-f...

There are summary sheets for each age group, and detailed tables. I found the ones around self employment particularly interesting.

[aetherson]

I mean, that's $780 per year. I don't know what the, er, lowest hexile in the UK makes, but surely it's no better than $30k per year, right? And in fact probably much worse.

So they'd struggle if they suddenly had expenses that were 2.5% of their income or more? That doesn't seem revelatory.

[aninhumer]

Really? I think the framing that 1 in 6 people don't have at least 2.5% of slack in their finances is equally damning.

[petercooper]

For a single adult, second decile was £11,300 in 2014 (roughly $15K now, a bit more at the time).

[dest]

would it mean that rents are not going to increase because people are not going to pay for it?

[tonyedgecombe]

Demand exceeds supply for housing in the UK. As having somewhere to live is a universal requirement, prices are only limited by affordability.

[lotsofpulp]

It could also mean that they cut back on vacations and other ancillary spending.

[sshagent]

having just left a long term rental(5 years), my new home is +50% rent :(

[sophiaellis]

Wow! What city are you living in? If you don't mind me asking