Austerity measures pound family savings

21 March 2011

Nearly half of all British families will spend an average of £386.76 from their savings to pay for everyday expenses this year, according to mutual society Family Investments.
The society's report, UK Mums' Budget, shows 47% of families across the country will have to use money from their savings to pay – equivalent to about £8 a week - for day to day living.
Saving remains British mums' second biggest priority, says the report, but some are paying less into their pensions - the survey found that 18% of mums were cutting their pension contributions by an average £159.60 a year.

Budget impact
Chancellor George Osborne delivers his Budget this week and says he will stand by earlier proposed tax rises, in spite of the pinch most UK families are feeling.
On top of this, utility prices are costing families on average £36.76 a week and rising fuel costs mean an additional £7.50 a week on transport, it says.

Osborne has hinted though that he may forego the planned 1p fuel duty rise.
Meanwhile, the impact of inflation on food prices means the average family pays £35.22 more on groceries a month.
"Our Mums' Budget clearly shows that mums are under the financial cosh at the moment. They are being hit hard by the increasing cost of everyday items, particularly utility bills, petrol and food," says Kate Moore, head of savings and investments at Family Investments.
"This is forcing them to cut back on saving, even though they are very concerned about the consequences of doing so," she adds.
Moore hopes the chancellor gives more details about the Junior ISA to encourage families to save:
"The planned launch of the new Junior ISA will be very significant as it's clear that mums up and down the country need a simple, accessible and affordable savings vehicle for their children."

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