Recession biting into budgets

One in four people have had to use their savings to buy food and daily essentials, while one in five have gone into debt to do so, a new report has revealed.

The report, by consumer group Which?, found one in three people are struggling to get by – 36 per cent admit finding things difficult, compared with 16 per cent in 2006, while less than half of people (43 per cent) said they were coping on their current income.

The research, looking at the impact of the financial crisis on people, surveyed 2,094 UK adults in November 2011 and also carried out in-depth interviews with 20 people.

The Which? Consumers 2012 report showed most people had felt the impact of the downturn, particularly since 2010. One in four had had to use savings to buy food or other essentials, and one in five had gone into debt to do this. The Which? report found that 19 per cent of people had got into debt to pay for everyday essentials.