Britons using savings to ease cost of living raise

An increasing number of Britons are being forced to raid their savings to keep on top of a rise in the cost of living, new research has shown.

According to the Birmingham Midshires Saving Britain report, the average consumer has been forced to withdraw £400 from their savings in the past three months, a rise of 14 per cent on the comparative figures for the tail end of 2006.

The statistics suggest that Londoners were the most likely to turn to their rainy day funds and that northerners were the least likely.

And the over 50s were the age group most in need of the saviour of savings – taking four times more from their back up accounts than the over 30s

Urging Britons to take advantage of the financial climate to make more savings, Jason Robinson, director of savings operations at Birmingham Midshires, said: “While homeowners are feeling the pressures following Bank of England rate decisions, there has never been a better time for people to put away their money.

“Interest rates at a six-year high mean great returns for savers, whatever amount you can afford to put away.”

Previous research conducted by Birmingham Midshires found that almost a quarter of Britons had dipped into their savings accounts between July and September 2006.

Tags: Midshires, tail end, Cost of living, advantage, rainy

Shoppers spend Xmas savings

Christmas savings were plundered by UK shoppers at the end of 2006, according to findings from Birmingham Midshires’ Saving Britain campaign.

Although on average Brits saved a total of £2,246 during the year, more than half of this was spent during the final few months.

The study also found that Brits were more able to save during the final three months of the year than at any other time.

Birmingham Midshires’ director of savings, Jason Robinson, said: “Our research shows that gifts and impulse purchases were the reasons for raiding our savings accounts.”

He continued: “Whilst this is to be expected during the festive season, we would urge people to think carefully about a realistic amount they can set aside each month so they avoid regularly plundering their account.”

There was a marked difference between regions in the willingness of people to plunder their savings over Christmas. People in the Midlands and Wales raided the most, a worrying £2,697, while those in the north took out a more restrained £926.

Tags: shoppers spend xmas, christmas savings, uk shoppers, Midlands, uk, jason robinson, whilst, Midshires