Most consumers say they are struggling

The results of the building society’s cost of living impact survey show that 59 per cent believe that they are in a worse financial situation in comparison to last year and only 32 per cent of people feel comfortable financially.

Results also show that 22 per cent of people are now using their savings to live and 45 per cent say that rising energy costs have had the biggest impact on their outgoings over the last three months, followed by food shopping prices and petrol prices.

More than half have reduced the use of energy in their homes, while over a third have used their car less due to fuel prices.

Just over a quarter say they’re socialising less or have stopped socialising altogether, 27 per cent have spent less on celebrations and 26 per cent have put off purchasing items for their home.

The average UK consumer is not optimistic, with 61 per cent believing they will be in a worse financial situation in the next 12 months.

Almost half say they are confident in managing their money, but the vast majority of those surveyed believe that it is important for financial services providers to offer support to their customers through the cost of living crisis.

Jonathan Westhoff, chief executive at the West Brom said: “The cost of living crisis is impacting many peoples’ everyday lives and, as a mutual, we’re committed to supporting our members through this challenging time.

“We know that everyone’s situation is different, so we offer tailored interventions and support to help our borrowing members ensure they can afford their repayments and remain in their homes. By working closely with these members, we seek to identify those who may be at risk of struggling with their mortgage payments, signpost to reputable independent advice charities and support networks, and in addition have a range of online tools and resources to help.

“Importantly, we do not levy ‘arrears charges’ for those who fall behind with repayments, challenging the ‘financially vulnerable pay more’ culture, and became the first provider to differentiate our mortgage variable rates, based on risk, resulting in 90 per cent of such borrowers benefiting from a reduction to their monthly payments at a time when borrowing costs in general have been rising sharply.

“I would urge anyone struggling with their finances to contact their provider as soon as possible – the earlier they know about your issues, the sooner they can help.”