Britons planning financial cutbacks

Millions of Britons are planning to cut corners of financial products in the face of increasing pressure on their household finances, a study has shown.

Data from American Express found that almost half (48 per cent) of consumers are planning to save money in this way.

The most common measure was revealed to be cutting payments into a family savings plan, followed stopping paying for ID theft protection.

Meanwhile, millions of other respondents confessed that they are set to scrap paying for payment protection insurance.

Chris Rolland, head of American Express Insurance Services, commented: "Life may be getting more expensive, but it is worrying that 48 per cent of Brits are planning to cut back on the policies that are designed to protect them during hard times.

"This may well be a false economy as people could end up paying out much more than they bargained for if something should happen."