Brits raiding savings to pay bills

11 July 2008 05:55am

More than one in 10 Britons has had to dip into their savings to pay their mortgage or rent during the past three months, a survey has shown.

Around 12% of people admitted they had raided money they had set aside to meet accommodation costs, while 15% had used their savings to pay utility bills or council tax.

A further 13% of those questioned said they had used money they had saved to meet other household bills, according to Chelsea Building Society.

Nearly two-thirds of people said they had seen a noticeable increase in the cost of food during the past three months, while 61% said they were spending more on petrol and energy, and 44% faced higher council tax bills.

Eight out of 10 people expect the cost of food to continue rising in the near future, while 77% are bracing themselves for further energy price rises and 71% think they will continue to spend more on petrol.

Unsurprisingly, given the higher living costs people face, the amount of money they plan to save each month looks set to fall by 13% to just £179, compared with £203 now.

Darren Stevens, director of customer services at Chelsea Building Society, said: "We are concerned that many people's finances are in real trouble due to the growing pressure of rising costs across so many essential items."

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