Cost of utility bills, food & petrol biggest financial worries of the nation

The high cost of utility bills, food and petrol and the impact they have on the nation's wallets are the biggest financial concerns for UK consumers in 2012, reveals research by MoneySupermarket. The worry over the impact everyday bills have on consumers is over double that of other concerns such as unemployment, paying your mortgage or not having enough money to save.

The report, which looked at a range of financial pressures ranging from rising bills, the threat of unemployment, paying off mortgages and debt, to the higher cost of public transport revealed that consumers are ten times more concerned about the cost of utility bills this year than they are about meeting their monthly mortgage payments. More than four in ten adults (43 per cent) said this was their biggest financial worry, whilst four per cent said their mortgage was their biggest financial stress.  The rising cost of food (34 per cent) and petrol (33 per cent) also ranked in the top three concerns, over double that of concerns around being made unemployed or finding a new job (16 per cent) or not being able to save money (16 per cent).

Clare Francis, consumer finance expert, at MoneySupermarket, said: "Over the past twelve months, UK households have experienced a sharp increase in the cost of living with rising fuel, petrol and food prices having a major impact on the financial state of the nation, so it is no surprise that they make up the main financial concerns for the year ahead. Although we have already seen signs that the rate of inflation is set to slow down in 2012, these costs still remain high and they represent a large proportion of everyday household expenditure."

The research also highlights how stretched some people are, with a quarter of households being unable to cope financially for more than week should their income change suddenly.

With a recent study estimating that the average family will be over £1,000 worse off this year, the MoneySupermarket research further revealed that an extra £1,000 would make a big difference to people's financial situation in 2012. More than six in ten adults (63 per cent) said such an amount would help them cope with their biggest financial anxieties in 2012.

Clare Francis said: "It is worrying that so many people would struggle should their financial situation change with a quarter of households saying they only had enough spare cash to last a week.

"Sometimes, sorting out your finances can feel overwhelming, but there are some very simple steps you can take to claw back some much-needed budget. Reviewing all of your household bills and not paying over the odds for things like energy, car insurance and day-to-day expenses can save more than you expect. Switching to the best deals using a comparison website like MoneySupermarket could save over £1,000 for your family."

Over a quarter (27 per cent) of consumers would put additional cash into savings, whilst 13 per cent said they would put it towards household bills.

Clare Francis added: "The fact that UK consumers are saying they would rather save or pay off their bills than do something frivolous if they were given £1,000 speaks volumes. With uncertainty in the jobs market, and household expenditure still high, it is important to have money to fall back on should your circumstances change."