One in three people can no longer afford to save

Fewer people are squirreling money away in savings accounts, despite fears over their jobs, the survey by Skipton Building Society revealed.

That is because many now have to save every penny for expenses such as gas and electric bills.

Post-Christmas debt and the increase in VAT also means many people find themselves in an even poorer financial state, a spokesman for Skipton said.

Kirsty Mann, 25, of Queensbury, mother to two-year-old Fay, said she had had to stop paying into the family’s savings accounts to be able to afford day-to-day spending.

She said: “Things have tightened up. My hours at work have decreased. I did have a savings account and I have stopped that and I have had to stop the little one’s savings account. We’ve had to tighten up on everything.”

The Skipton survey revealed they are not alone. Its study into Britain’s savings habits shows that a quarter of those surveyed said that they saved as much as they could afford, but are still worried that the amount they’re putting aside is not enough.

It also revealed that more than half of people were saving less than £100 a month and almost one in four have no savings at all. In Yorkshire people are saving an average of just £164 per month, the survey found.

Karen Bailey, a spokesman for Bradford Credit Union, said: “More people are coming to us for help, especially since Christmas. People have not spent as much because of the VAT increase and worries about how safe they are in their jobs. People are concerned that they have less money but an increased work load.”

Christians Against Poverty (CAP), which runs free CAP Money courses from its base in North Street, Bradford, said help was at hand. Chief executive Matt Barlow said: “I am encouraged to see that more people would like to save. CAP Money is not specifically for people in debt, it is ideal for anyone wanting better control over their finances.”