Two-thirds ‘worried their financial situation will worsen in the year ahead’

Two-thirds (66%) of people are worried their financial situation will worsen over the year ahead, a survey has found.

More than a third (31%) of those surveyed did not save any money over the summer in preparation for rising energy bills this winter, according to the research from credit card provider Vanquis.

One in seven (13%) increased their level of debt, the research among 2,000 people across the UK found.

Most (81%) people surveyed were concerned about the rising cost of living, with winter on its way.

More than half (58%) of over-55s said they will try to use less energy this winter, as will 43% of 18 to 34-year-olds.

Under the energy price guarantee, the typical household in Britain will pay, on average, around £2,500 a year on their energy bill.

The guarantee reduces the unit cost of energy, and so actual bills could be higher or lower, depending on the size of the home, how well it is insulated, how many people live there and how much energy is used.

Fiona Anderson, managing director at Vanquis, said: “We believe that the rising cost of living is a contributing factor to people relying more heavily on borrowing.”