Savings squeezed as Brits indulge in winter shopping spree

Winter shopping sprees have taken their toll on savings accounts, according to the latest findings from Birmingham Midshire’s Saving Britain study.

The report found that a buoyant winter for retailers has also meant that 12 per cent of savers have raided their savings accounts to pay for luxuries, gifts and impulse purchases.

The seasonal increase in bills also hit savers hard, with a staggering one in ten having to draw on their nest eggs to cope with higher-than-expected bills including utility statements and home maintenance costs following the winter weather. Men in particular bore the brunt of bills, with 11 per cent being caught unaware over the winter months.

Jason Robinson, director of savings operations for Birmingham Midshires, commented on the findings: “Although most of us feel like we are hibernating over the winter months, it’s still an expensive time of the year. Utility bills can soar as we crank up the heating and we also use retail treats to ward off the winter blues. Setting aside a smaller amount of money each month and leaving it untouched is much better than saving more than what is practical and being forced to raid.”

The latest Birmingham Midshires Saving Britain campaign asked 2,000 people about their savings and raiding habits over the last three months.

Key Findings

Overall, 12 per cent of those raiding their piggy banks used the cash to splash out on retail therapy, luxuries and impulse purchases. Women were the worst offenders with 14 per cent dipping into their savings to fund a winter shopping spree (compared to 11% of men).

The under thirties were most likely to hit the high street at the expense of their savings accounts (13%), whilst those aged 30 to 50 years were most restrained (10% dipped into savings)

Unexpected bills also hit savings accounts hard with ten per cent having to draw on their savings to pay for bills such as utility, telephone and credit card. Men were least prepared with 11 per cent having to raid their savings, compared to nine per cent of women.

Overspending on current accounts also left nine per cent of savings accounts worse for wear, whilst emergency home and car repairs were responsible for a further eight per cent of people plundering their accounts.

London savers were least able to resist the temptation of a winter shopping spree: 11 per cent raided their piggy banks to hit the high street over the winter months.

Winter bills caught 13 per cent of Scottish savers unaware, whilst those in London were better able to budget for these unexpected costs (9%).