By Kristy Dorsey

New research has suggested that millions of savers are raiding their rainy-day funds to supplement household income amid the coronavirus pandemic.

With approximately a quarter of the UK workforce on 80% furloughed wages and millions more either out of a job or on reduced income, a survey on behalf of Scottish Friendly found that a third of those questioned last month believed they would be unable to pay some household bills in the coming weeks. As a result, 45% of savers said they were likely to withdraw money from accounts or investments to shore up their finances.

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Only 13% of home owners at that time were considering requesting a mortgage holiday, while just 9% said they would reduce or stop regular contributions into stocks and shares ISAs. However, 44% reported being worried about their job security, versus 29% who were unconcerned.

Those with money set aside were most likely to source cash from easy-access savings accounts, with one in five indicating this as their preference. A further 19% said they would be reducing regular savings into their cash accounts.