With winter on our doorstep, recent research shows that under-thirties may struggle to pay the higher bills that go hand-in-hand with the dark and chilly nights of the festive season.

Over the penultimate quarter of 2006, almost a third of under-thirties (31%) were forced to raid their savings in order to meet the payments of unexpected bills, Birmingham Midshires' Saving Britain campaign revealed, and since then energy bills have risen 38%.

The lender’s research has found that that the over fifties were the best at budgeting for such a change, with 22% of this age group raiding savings to pay for unexpected bills. More than one in four (26%) people aged between 30 and 50 years were financially unprepared to pay their bills over the third quarter of the year.

Across the regions, Londoners may be the least prepared for unexpected bills over winter. Almost one in three (31%) Londoners had no choice but to dip into their savings to pay for bills throughout the third quarter of 2006. They were followed closely by 30% of unprepared Scots. In contrast, Northerners proved a shining example with just one in five (21%) relying on savings to cover unexpected bills.

Jason Robinson, director of savings & investments for Birmingham Midshires commented on the findings: "Our latest findings make for worrying reading as we move into the coldest season of the year. We all know that Christmas can be an expensive celebration and Britons need to make financial provisions in order to cope with the seasonal generosity as well as the increase in bills over the winter months.”

“Putting aside a little and often will ensure there is enough money in the rainy day account to cover most eventualities over the festive period.”

Other key findings:

• Women were less prepared than men for unexpected bills (26% needed to raid their savings, compared with 24% of men). 
• Almost a quarter (24%) of Southerners were unprepared to pay off all their bills between July and September.
• Midlanders and the Welsh were not far behind with 23% dipping into savings accounts to pay for unexpected bills.