11 July 2008
More than one in 10 Britons has been forced to dip into savings to pay their mortgage or rent in the last three months, a survey has shown.
Chelsea Building Society said about 12 per cent of people admitted they had raided money they had set aside to meet accommodation costs, while 15 per cent had used their savings to pay utility bills or council tax.
A further 13 per cent of those questioned said they had used money they had saved to meet other household bills following recent hikes in food and fuel bills.
Nearly two-thirds of people said they had seen a noticeable increase in the cost of food during the past three months, while 61 per cent said they were spending more on petrol and energy, and 44 per cent faced higher council tax bills.
Eight out of 10 people expect the cost of food to continue rising in the near future, while 77 per cent are bracing themselves for further energy price rises and 71 per cent think they will continue to spend more on petrol.
This has resulted in the amount of money people plan to put aside each month falling by 13 per cent to just £179, compared with £203 now.
Chelsea Building Society, director of customer services, Darren Stevens 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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