Financial hangover prolonged by comfort buying

Britons have remorselessly raided their savings since Christmas, fighting a financial hangover from Christmas and a prolonged winter ‘comfort’ spending spree.

Savings dipped by 27% in the last three months according to latest research out today from Birmingham Midshires' Saving Britain campaign. Britons failed to nurture their nest egg over the winter months, saving an average of £495, compared to £680 in the final months of 2005.

The report unearthed a disappointing start to the nation's savings habits in 2006. Despite an overall dip, men proved to have the healthier savings skills as they managed to stash away 47% more than women did in the first quarter of the year (£594 compared to £403).

However, men still failed to live up to their savings standards by allocating 40% less in the first quarter of 2006 than the previous three months.

Across the generations, those in the 30 to 50 age group were the most prudent savers in the first quarter of 2006, as they managed to put away £679. In comparison, those aged over 50 saved £413, while the under thirties managed only £295.

The under thirties also proved the most erratic with their savings stockpile, saving an average £489 less than over the Christmas period of 2005.

Jason Robinson, director of savings operations for Birmingham Midshires commented: "The cold weather and delayed advent of spring could account for this disappointing start to the savings year."

"We know that the months after Christmas often cause a 'financial hangover' and the prolonged winter months cause people to comfort spend in an effort to boost everyday doom and gloom."

"We'd advise savers to think carefully about their spending habits over the year to maintain consistent savings habits and nurture their long-term security."