Winter bills may spell trouble for young Brits

With winter on our doorstep, the latest research from Birmingham Midshires’ Saving Britain campaign reveals that under-thirties may struggle to pay the higher bills that go hand-in-hand with the dark and chilly nights of the festive season.

Over the penultimate quarter of 2006, almost a third of under thirties (31%) were forced to raid their savings in order to meet the payments of unexpected bills.

With energy bills rising by 38 per cent in the last year, and a seasonal increase still expected, the research from Birmingham Midshires suggests that over 50s will be best able to handle these increases in bills. Just 22 per cent of this age group raided savings to pay for unexpected bills in the last quarter, compared with one in four (26%) people aged between 30 and 50 years old.

Across the regions, Londoners may be the least prepared for unexpected bills over winter. Almost one in three (31%) Londoners had no choice but to dip into their savings to pay for bills throughout the third quarter of 2006. They were followed closely by 30 per cent of unprepared Scots. In contrast, Northerners proved a shining example with just one in five (21%) relying on savings to cover unexpected bills.

Jason Robinson, director of savings & investments for Birmingham Midshires commented on the findings: “Our latest findings make for worrying reading as we move into the coldest season of the year. We all know that Christmas can be an expensive celebration and Brits need to make financial provisions in order to cope with the seasonal generosity as well as the increase in bills over the winter months. Putting aside a little and often will ensure there is enough money in the rainy day account to cover most eventualities over the festive period.”

Other key findings:

Women are less prepared than men for unexpected bills (26% needed to raid their savings, compared with 24% of men last quarter).

Almost a quarter (24%) of Southerners were unprepared to pay off all their bills between July and September. Midlanders and the Welsh were not far behind with 23 per cent dipping into savings accounts to pay for unexpected bills.