Economic pressures ‘take toll on savings’

Saving for a rainy day might be one way to help on the road to becoming debt free, but an increasing number of people are finding it difficult to leave the piggy bank undisturbed.

Research from Chelsea Building Society has discovered the extent to which the cost of living is restricting the ability of Britons to avoid raiding their savings.

Rising utility bills and council tax have resulted in 15 per cent of savers having to dip into their accounts for extra funds, with food costs and fuel prices also taking their toll on people’s savings.

Commenting on the trend, Chelsea’s director of customer services Darren Stevens said: “While times may seem tough to some, at the moment it is still vital that people continue in their habit of putting some money aside for long term savings.”

The findings come after Axa revealed that many parents are refusing to lend money to children as they try to cope with the economic downturn.

By Neil Condron