UK watchdog warns millions more Britons in financial trouble due to inflation

THE number of Britons struggling to meet bills and credit repayments has risen by 40 per cent in a year, according to the financial regulator.

About 10.9 million people are now finding it tough to meet their obligations, roughly half of whom have missed at least three out of six months of payments, the Financial Conduct Authority (FCA) said.

Around half of UK adults, or 28.4 million people, were feeling more anxious due to the rising cost of living in January than they were last summer, it added.

With inflation still at the highest level in decades, the FCA has issued several reminders to banks about treating customers fairly, particularly if they run into difficulties.

The incoming consumer duty, which will come into force in the summer, will require companies to ensure they act in the interests of retail customers. The shift was introduced after the regulator came under criticism for its inaction over a mini-bond scandal that exposed customers to losses on more than US$300 million in investments. BLOOMBERG