25% of households have no savings

A poll by insurer Direct Line has found that 25% of households have no money set aside for emergencies, with 32% saying they have stopped saving due to the rising cost of living.

The household which indicated that they do have a savings pot, 47% say they have now stopped adding to it.

The survey also found that more than a fifth of households would not be able to last a month without getting into financial difficulty if the main earner was unable to work. Of those with savings, two-thirds would face financial difficulties within a year if the main breadwinner was not working.

Vincent Guadagnino Marketing Manager at Direct Line said “Millions of households would be in an incredibly vulnerable position if the main household earner was to find themselves out of employment, with the impact felt in an incredibly short amount of time.” He added: “For many households the impact wouldn’t be measured on months but just a few short weeks.”