HOUSEHOLDS’ financial resilience will be eroded over the coming year as the cost-of-living squeeze tightens, according to economic modelling.

In a year’s time, the areas of Britain where fewest people have enough money left at the end of the month will include Yorkshire and the Humber (6.7 per cent), the North East of England (7 per cent), Wales (8.1 per cent), the East Midlands (8.7 per cent) and the West Midlands (9.2 per cent), it was suggested.

The figures were released in the Hargreaves Lansdown savings and resilience barometer, produced with Oxford Economics.

Researchers used official data for the modelling, including the Wealth and Assets Survey.

Over the next 12 months, the percentage of people with sufficient emergency savings will fall from 62 per cent to 57 per cent, it was predicted.

Having sufficient savings was defined as enough to cover at least three months of essential spending.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown said: “The regions where people started with less savings and less wiggle room in their budgets will face some impossible challenges.

“In the next 12 months, rising prices will mean huge falls in the proportion of people with enough cash left at the end of the month.”