Rising utility bills are forcing people to tighten their belts

By MoneyhighStreet Staff. Published on May 23, 2008 This post currently has no comments.

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Rising utility prices have forced many people in the UK to cut back their spending, a new report has suggested.

Figures from Alliance & Leicester showed that 73 per cent of people in the country have already been forced to make cutbacks in the coming months. What''s more, 34 per cent revealed they expect their levels of disposable income to drop further in the future.

Around eight in ten (79 per cent) said that rising utility bills, as well as the soaring cost of food and consumer goods, were responsible for the belt tightening.

"It seems many of us are feeling the pinch and looking for ways to cut back," Emma Walkley, a current account manager at Alliance & Leicester.

"As a nation we are fairly financially minded which means that when budgets are stretched we can plan pragmatically how to cope."

Indeed, the study showed that 20 per cent have already switched utility provider in a bid to save money.

"Our research shows that we are savvy money savers as well as savvy shoppers," Ms Walkley concluded.

Recently, moneysupermarket.com suggested that rising prices were forcing more people to consider payday loans.