Economic worries force family to slash holiday budgets

Concerns about future debt mean that families in the UK are planning on spending far less over the summer holiday this year, a new study has indicated.

As worries about the economy and future job prospects mount, research from Abbey Credit Cards has shown that consumers are trying to guard against debt problems by slashing their holiday spending.

In fact, the survey indicated that the average British family plans to spend £173 less than they did last year over the warmer months.

Most of the savings will come from opting for a cheaper family holiday, with families typically planning to spend £493 on an overseas trip – compared to £1,116 last year.

"With rising inflation it is remarkable to see an overall cost drop like this, but it just shows how British parents are feeling the pinch," commented Callum Gibson, head of Abbey Credit Cards.

Recently, research from uSwitch showed that the high costs of necessities like food and utilities in the UK had pushed the country down a European quality of life index.