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Post Office issues savings warning

Rising living costs in the UK are cutting into savings, the Post Office has claimed.

According to the firm, almost five million people can no longer afford to put money aside, using their income instead to pay off credit cards or unsecured loans.

Moreover, when asked to give a reason for not saving, 49 per cent claim that they "simply don't enough cash" to do so.

Richard Norman, director of savings at the Post Office, said: "Our research shows that millions of people are missing out on earning interest on their savings and have to live without the security of having a 'savings safety net' if they ever found themselves in financial trouble.

"In times of economic uncertainty, it's more important than ever to try and put money away. Our advice is try and keep saving regularly, even if it ' s just a small amount, and consider saving less frequently such as every other month."

The Post Office also found that 43 per cent of Britons cut back on saving in the run-up to the traditional Christmas spending spree.

Extra expenditure at this time of year is so pronounced that 21 per cent said that it took them until the following March to start saving as normal again.

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