As the cost of living crisis drags on, almost a third of UK adults have dipped into their savings to make ends meet, collectively withdrawing more than £53 billion, writes Bethany Garner.

In the 12 months to April 2023, 29% of UK adults say they used savings to keep up with living costs, according to a study commissioned by life insurance broker LifeSearch (conducted by the Centre for Economics and Business Research (Cebr)).

The study, which surveyed 3,006 UK adults, found that 52% think they are in a worse financial position today than they were a year ago.

The study found that, in the coming months, respondents expect to become £232 worse off per month on average. 

This pressure is largely down to the rising cost of everyday essentials, such as fuel and groceries. According to the Competition and Markets Authority (CMA), the increases are not solely driven by external factors.

Retail profit margins on petrol and diesel, for instance, have increased over the last four years. According to CMA analysis, average supermarket pump prices are five pence per litre higher than they would have been if average margins remained at 2019 levels.

Sarah Cardell, chief executive of the CMA, said: “Although much of the pressure on pump prices is down to global factors including Russia’s invasion of Ukraine, we have found evidence that suggests weakening retail competition is contributing to higher prices for drivers at the pumps.”

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