This is according to Family Investments’ UK Mums Budget which reveals that a total of £1.3bn will be cut from household savings as families struggle to meet the escalating cost of everyday essentials.
The research showed that not being able to save enough or anything at all was the second biggest concern after paying for utility bills, demonstrating that saving is still a priority for families across the UK. Despite this, savings levels have been hit across the board, with mums making the most significant reductions (£20.18 per month) to short-term savings such as instant access ISAs. Pensions have also been hit with just over a million mums (18%) cutting their monthly pension contributions this year by an average of £159.60.
The research suggests that savings cut-backs have been made necessary, despite the fact that families want to prioritise them, by the extra budget needed by mums to cover everyday essentials such as utilities, transport costs, groceries and housing costs.
The most commonly felt spending squeeze among over three quarters (77%) has been caused by utility price rises. In total, UK mums will be spending over £2.5bn more on utilities throughout 2011; this equates to £36.76 more per month, per household.
Furthermore, transport costs have risen for 75% of mums; with the additional spend on transport across the UK totalling £2.2bn, or £401.64 per family per year. In total, UK mums will be spending £2.3bn more on groceries over the next year; this equates to £35.22 more per month, per household.
Asked what they would do if they were Chancellor for the day, Mums were clear that reducing everyday costs and helping them balance the need to work harder with looking after their children are the priorities. The three Budget announcements most Mums would like the Chancellor to make are:
- Scrap April's fuel duty rise (74% of Mums)
- Provide better provisions for flexible working for both parents (51%)
- Remove VAT from child essentials e.g. carry cots, child car seats, prams and pushchairs (45%)
