Rising costs associated with food, petrol, energy bills and council tax are leaving British consumers significantly out of pocket, it has been claimed.
According to research by the Post Office, fewer people are able to set money aside on a regular basis and many of those that do are returning to these funds after only a short period of time.
With millions of people around the country struggling to become debt free, it has reportedly been the recent increases in energy bills and council taxes that have had the greatest impact in the finances of British households.
Richard Norman, director of savings at the Post Office, said: “Our research shows that millions of people are missing out on earning interest on their savings and have to live without the security of having a ‘savings safety net’ if they ever found themselves in financial trouble.”
A report released by accountancy firm Grant Thornton last month suggested that the rising cost of living in the UK has resulted in a notable increase in the number of people entering an Individual Voluntary Arrangement (IVA) in recent years.