Families 'struggle to afford food'

New research from children's charity NCH and financial services provider Barclays found 11% of households have at some point had insufficient funds to buy over-the-counter drugs.

With a similar percentage also having to miss out on food, compilers of the report said more needed to be done to help people on low incomes get to grips with their finances.

A survey of more than 1,000 adults found that only 56% of people earning less than £15,000 a year understand basic financial terminology such as what an APR is, compared to 82% of those with a £45,000-plus salary. Such poor financial knowledge can have a "devastating" impact on household budgets, the report indicated.

The survey revealed that people on the lowest incomes are four times more likely to have gone without medicine than those on higher incomes. They are also six times more likely to have gone without food at some point.

Clare Tickell, chief executive of NCH, said: "Although these figures indicate a far bigger problem of poverty in the UK, there is no underestimating the devastating impact bad financial management can have on families' lives.

"For those who struggle to make ends meet, knowing how to manage money effectively can mean the difference between being able to provide for medicine for your family or having to go without."

NCH and Barclays have teamed up to launch a Top Ten Tips pocket guide to help families and young people on low incomes avoid debt and manage their money better.

It is part of a three-year Financial Futures initiative.

Kirstie Robbie, head of UK community relations at Barclays, said: "By gaining an understanding of the financial terms and processes that impact our daily lives, young people and families can regain control of their own finances and avoid making the impossible choice of deciding to go without food, rent or medicine."