This is an unappealing fact the average household may have to face up to, if not already as the price of energy and food continually rise again and again. This would be the first time since the 1950's that we are being forced to dip into our savings to meet the rising monthly costs.
The first three months of the year from January to March saw the average Briton spend £3,792 whilst only earning £3,751. This leaves the average Briton needing to find £41 to carry them through the month.
The increase in energy bills are taking its toll on more and more people with around five million households now considered in fuel poverty. These unlucky affected are soon going to be making the choice as to whether to eat or stay warm this winter.
Savings are going to be hit a lot more than in previous years due to the cost of living increasing and with the uncertainty of the UK banks; people are now becoming wary as to where to deposit their savings.
Northern Rock who have now been nationalised can only hold up to 1.5% of the UK's savings market and are now retracting savings deals to cap an already exceeding target.
The government are now considering 100% of all savings similar to the Irish bank's recent move.
If you're thinking of dipping into yoursavings, make sure they are deposited in a high interest savings account. You will need to ensure you havesafe savings for the situation which is only getting worse.
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