Almost half (48.3%) of consumers have used their savings to cover everyday costs in the past 12 months, Scottish Building Society has revealed.

Almost one in five (17.9%) consumers in England save with no particular method, with a quarter (24.4%) putting money aside for nothing in particular.

The society says its findings, which have been published within its Saving Barometer report, shows a “country of savers struggling to accumulate wealth” as inflation eats away at existing savings.

Nearly two thirds (63%) stated that the current economic climate has hurt their finances, with 26% strongly agreeing. One in six consumers have no savings account at all.

In its first examination of household finances since Andy Burnham became Prime Minister, Scottish Building Society said the economic pressure is reshaping longer-term plans as well.

Two in five (59.6%) stated that their main financial goal has been extended, reduced or put on hold altogether due to economic conditions, and 56.5% are concerned about the ability to save throughout 2026.

The society said its data has significant implications for the mortgage market as property prices, interest rates and deposit levels continue to price out first-time buyers.

Scottish Building Society chief executive, Paul Denton, concluded: "We can’t ignore the economic backdrop. Nearly two-thirds of people tell us the current climate has hurt their finances, and almost half have had to dip into their savings just to cover the basics in the past year. That money could have become a house deposit or a safety net, and when every pound is that hard won, it needs to work as hard as it possibly can.

"That starts with the simple things: knowing what rate your savings are earning and checking whether it’s kept up. Almost one in five people save with no set method and a quarter are putting money aside for nothing in particular. A clear goal and the right account can change how far that money goes.

"As a mutual, we exist for our members and savers, not shareholders. Delayed isn’t the same as defeated, and our job is to make sure that whatever people can put aside is working for them until they’re ready to take their next step."

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