Families are trying to save despite austerity

Many British families are still attempting to put money aside each month, despite the difficult economic position the country finds itself in.

New research by Aviva has shown that many households are opting to think of the future by saving, while a large number could also find their financial situation is improved on the back of debt consolidation.

Richard Kelsall, head of savings at the company, said it is understandable that people are continuing to spend on certain items that they deem must-haves.

These include summer holidays, which are non-negotiable for 17 per cent of people, as well as cable or satellite TV, an essential for 12 per cent.

"Our research shows that most families are trying to save and it's encouraging that two-thirds say they could afford to put more money aside each month," Mr Kelsall added.

Recent research by Lloyds TSB revealed the spending power of many Britons is being hampered by the weakest income growth rates in more than a year.