Cost of living impact revealed as 50% of people use savings to help pay bills

Almost half of people have used their savings to help pay their bills in the last 12 months as the cost of living crisis continues to blight the UK, with a new survey from investment platform Saxo revealing that 48% of people have had to dip into their savings.

A regional breakdown of the results also show that Belfast had the highest ‘yes’ response rate, with over 60%, followed by Brighton (57.14%) and Manchester (53.33%), demonstrating the issue is spread across the UK.

Of those asked, a total of 45% have also seen their savings decrease as a result of the rising costs while around 13% of people also revealed they have had no savings in the past 12 months, compared with 20% who have seen their savings increase.

The survey from investment platform Saxo also asked if people think they will be in a better financial position in 2024, to which the majority of people (42%) believed they wouldn’t be better off. Meanwhile, 31% of respondents believe they will be in a better position in the new year.

Commenting on the prediction that interest rates are due to fall next year there was a mixed response, as 43% of people said this put their minds at ease, but 40% agreed that it didn’t put them at ease to any extent.

Have you ever had to use your savings to pay for bills due to the cost of living?

1. Yes – 48%
2. No – 45%

Top 10 cities responding ‘yes’

1) Belfast – 60.34%

2) Brighton- 57.14%

3) Manchester – 53.33%

4) Cardiff – 51.95%

5) London – 51.66%

6) Glasgow – 51.16%

7) Edinburgh – 50.00%

8) Bristol – 49.38%

9) Southampton – 47.42%

10) Newcastle – 44.58%

Have your savings increased or decreased in the past 12 months?

1. They have increased – 20%
2. They have decreased – 45%
3. They have stayed the same – 23%
4. I haven’t had any savings in the past 12 months – 13%

Following the news the energy price cap is falling, does this put your mind at ease?

1. Yes (net) – 45%
2. Yes, completely – 7%
3. Yes, to some extent – 38%
4. No, not at all – 43%
5. I don’t know – 7%

Following the news interest rates are predicted to fall in 2024, does this put your mind at ease?

1. Yes (net) – 43%
2. Yes, completely – 7%
3. Yes, to some extent – 36%
4. No, not at all – 40%
5. I don’t know – 10%

Do you think you will be in a better financial situation in 2024

1. Yes – 31%
2. No – 42%
3. I don’t know – 27%