An increase in inflation and fuel prices is resulting in people spending more and saving less, a survey has found.

Overall people are now spending more and saving less than the last quarter, as price increases cause outgoings to rise. 

Research for the LV= Wealth and Wellbeing Monitor ­- a quarterly survey of 4,000+ UK adults, found:

• 27% (14.1m) are concerned about rising prices compared to 24% (12.5m) in June
• 38% (19.9m) of consumers say their outgoings have increased, and 19% (10.1m) say they are saving less. 
• However, on the positive side only 5% (2.8m) of people say they are worried about losing their job compared to 12% (6.1m) in September 2020.

LV= said its study also found that 7.6m people were worried that their savings were being devalued by low interest rates and rising inflation.

The retirement and investment provider found that in September 20% (10.7m) UK adults said they expected their finances to worsen over the next three months although the figures were much better than the lowpoint of December 2020 when 26% (13.7m) expected their finances to worsen. 

Clive Bolton, managing director of savings and retirement at LV=, said: “With lockdown restrictions removed, the LV= Wealth and Wellbeing Monitor shows that although consumer sentiment has deteriorated over the previous three months it remains much improved compared to the low point at the end of last year. 

“We are in a period of adjustment as life slowly begins to return to normal after Covid and the reality of living in this new environment is beginning to bite.”

The LV= Wealth and Wellbeing Indices produced for the report track overall changes to spending, saving and finances in terms of positive and negative consumer sentiment.

• LV= surveyed 4,000+ UK adults via an online poll conducted by Opinium in June 2020, September 2020, December 2020, March 2021, June  2021 and September 2021.