Close to half (47%) of all savers are dipping into their accounts to help meet regular bills as the cost of living crisis continues to bite, new research from Investec Bank has warned.

Of these, 16% said their savings are “extremely” important in helping them meet their regular bills, such as their energy, water and other utility payments, while 31% said they’re “quite” important.

Investec’s findings, based on a study of 1,106 UK adults, found that 38% use their savings to help pay energy bills, while 30% use savings to help pay car insurance, and around a third (29%) to help pay for car servicing and maintenance. More than a quarter (27%) are using savings to help pay for their water or other utility bills.

The research also indicated that with many people having dipped into their savings, a significant number believe that they then won’t be in a position to build them back up.

Around one in six (17%) said once they withdraw money from their savings, they never replace it, and that of those who do, it takes an average of over six months to build their savings back up to where they were. More than one in 10 (11%) said it would take a year or longer to replace them.

Head of retail savings at Investec, David Hunt, said: “It’s concerning to see a trend of people having to use their savings to pay for regular monthly bills.

“This points to the reality of the cost of living crisis – those who might have previously been saving up for something special, perhaps a deposit for a house, a holiday or a wedding, are now having to spend their savings on household bills and other everyday items.

“It’s even more concerning how many people aren’t in a position to repay what they’ve taken from their savings, even over a number of years. This means it's even more important to make sure that your savings are working as hard as possible for you, with the best possible rate, in an account that best suits your individual needs.”

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