Quarter of UK adults to cut spending in 2015: Mas

Quarter of UK adults to cut spending in 2015: Mas

Next year is predicted to be harder on personal finances, according to those surveyed by the Money Advice Service, with a quarter of UK adults planning to reduce their spending in 2015 as a result.

The study of 3,000 UK adults found that 20 per cent reckon they will find it harder to cope next year, whilst just 10 per cent expect things to get easier.

Inflation tops the list of things that will make 2015 harder than 2014 with 54 per cent, followed by no pay rises at 36 per cent and expectations of a pay cut at 17 per cent.

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Mas said that a significant proportion of UK adults are taking proactive steps to take control of their money, with 47 per cent of those who plan to reduce their spending, hoping to cut back by buying cheaper alternatives to their usual products.

A total of 41 per cent also planned to spend less socialising, while 35 per cent said they will specifically spend less on clothing.

A further 22 per cent plan to make changes to the way they manage their daily finances in 2015 - with 56 per cent in this group saying they will stick to a monthly budget.

Nearly half - 45 per cent - stated they will put aside some money each month, while 36 per cent will simply make more of an effort to live within their means.

Jane Symonds, head of customer service delivery at the Mas, said that managing finances better and thinking about ways to reduce spending are great New Year’s resolutions.

“We have a range of tools on the Money Advice Service website, such as our budget planner which makes it much easier to plan your outgoings in 2015.

“We also have a cutback calculator which can show you where you can free up some extra money – and just how much you can save over a period of time.”