Rising living costs creating new budgeting need for Brits

Over a third (34%) of UK adults expect to have less spare cash over the next six months, with eight in ten (79%) blaming this on the increasing cost of food, consumer goods, household bills and fuel prices, according to research from Alliance & Leicester Current Accounts.

However, Brits are currently adapting their finances to improve their overall financial health with over half (55%) taking action already, and some actually choosing to sell expensive items such as cars or jewellery.

The top money saving measures include:

Changing utility bill providers (20%)
Switching credit card providers to one with a 0% rate (12%)
Changing current accounts (8%)
Consolidating credit card debts into a personal loan (7%)
Changing jobs to a higher salary (6%)
Taking on a second job (6%)
Selling expensive items such as a car, jewellery or down-sizing their house (5%).

Brits are also increasingly conscious of saving money and cutting back on spending. More than four in ten of those questioned (42%) say they are currently budgeting carefully and trying to live within their means; but there is a marked difference in attitudes between younger and older generations, with those aged 35-54 more likely to budget carefully (45%) than those in their teens or twenties (34%).

People are also making changes to their everyday routine in order to save money including shopping around to get the best grocery deal (45%), saving electricity by turning off lights (39%), shopping in cheaper supermarkets (28%) and using ebay or charity shops more often (25%).

Emma Walkley, Current Account Manager at Alliance & Leicester said: "It is encouraging to see people are making positive changes to their spending and budgeting habits. This will hopefully stand them in good stead should they see their disposable income affected over the forthcoming months.

"Taking advantage of the best financial deals on the market is always important, but more so in the current environment. We would advise people to take a good look at their finances and see how they can be improved. Often making simple changes like switching to a current account provider offering a better interest rate can make any belt-tightening feel a little bit easier."

People in Wales and the South West expect to be the most affected over the next six months, with nearly four in ten (37%) expecting to have less disposable income. Those in Scotland and Northern Ireland who are more optimistic with less than one third (29%) expecting to see a drop.

Northerners are the most proactive at taking steps to improve their overall finances with more than three quarters (77%) cutting back on spending. This compares to just over two thirds (69%) of those in the Midlands.

Alliance & Leicester offers a range of market leading current accounts, with competitive rates of interest and value added benefits. To find out more information on Alliance & Leicester's Premier current accounts, visit alliance-leicester.co.uk/currentaccounts.