Nearly a quarter of UK adults (24%) are using their savings to cover the rising cost of living – equating to 12.7 million people across the UK.
New research from UK credit provider Vanquis reveals most Brits (82%) are worried about rising prices, and more than half (53%) are cutting back on essentials as a result. A similar amount of people (51%) expects their household financial situation to worsen in the next 12 months.
The top five cost concerns are:
1. Household bills (71%)
2. Food shopping (61%)
3. Transport and petrol (43%)
4. Rent or mortgage payments (17%)
5. Phone or broadband costs (11%)
This week, as the Consumer Price Index (CPI) inflation reaches its highest rate in 40 years, Vanquis are launching a free cost of living calculator. The calculator helps people understand how rising prices could impact their finances and signposts useful advice to save money on bills.
The research also reveals that women are more concerned than men (88% v 75%) about rising costs. As such, they are more likely to cut back on essentials (61% v 45%) and more women than men expect their financial situation to get worse over the next year (56% vs 47%).
In general, four in 10 people (43%) don’t know how the rising costs will impact them, this increases to over half (53%) of younger adults, highlighting that this group may need additional support.
Six in 10 adults (60%) say they would find support with the rising cost of living useful, however more than half (55%) don’t know where to find it.
Fiona Anderson, Managing Director of Cards at Vanquis comments: “The cost-of-living crisis is a huge concern for many people and this week’s inflation announcement shows how prices are continuing to rise.
“Though saving on everyday spending is not the answer to the crisis overall, our calculator aims to give people a clearer picture of how the increases may impact them and share ideas to help save money.”