Households set ‘stricter budgets’

Brits are tightening up on their finances and debt management in the wake of the credit crunch, according to research carried out by Opinium Research for PayPal Top Up Card.

In the survey, 57 per cent of people said that they now budget more strictly compared to a year ago.

Despite this, while 42 per cent claimed to stick to their budget each month, one-fifth still had to rely on savings or credit cards to afford basic living costs.

The managing director of Paypal UK, Carl Scheible, said many households had seen a significant change in their financial commitments over the past 12 months.

He added: “With energy prices soaring, mortgage payments still high and the cost of food increasing at a record pace it is encouraging to see people … trying to keep their financial house in better order.”

In July, the annual rate for electricity, gas and other fuels increased by 2.3 per cent, said figures from the Office for National Statistics.