An indication of the depth of the financial woes faced by many Britons has been emphasised by a new poll showing a quarter of adults will not be going on holiday this summer.

A poll by insurer Swiftcover.com revealed 24 per cent are not stopping their work to take a break this summer and 66 per cent of those not planning to get away from it all blamed "financial pressures" for their decision.

Debt consolidation loans may be a useful way for consumers who are under such strain to reduce their outgoings, something that may help them set some cash aside for a break.

But money alone is not the only problem, as fear of job losses is another prominent reason for this year's holiday plans being abandoned.

The survey showed 580,000 remaining at their workplaces for fear of job security, while another 550,000 felt their continued presence may impress bosses enough to keep them secure against redundancy.

Senior marketing manager at Swiftcover.com Amanda Edwards observed: "The country is still gripped with concern by economic conditions so Brits are understandably worried about the impact having a holiday may have on their jobs."

However, not everybody is in such a bad situation, as indicated by another poll on holiday plans published this week by Lloyds TSB.

It revealed that 54 per cent of the public will be heading on an overseas trip this year, a figure that rises to 58 per cent for the over-55s and the 18-24s.

However, these groups may include a number of people without job worries due to being students or retired.

By James Francis
 

More people could find themsleves needing debt consolidation help in the near future as new figures have revealed the economy is continuing to struggle.

Hopes that the UK economy would pick up and see an acceleration of growth were dashed as official figures for the second quarter of 2011 showed the level of gross domestic product (GDP) was only 0.2 per cent higher than in the first quarter.

Such slow growth may be bad news for struggling consumers and businesses, with possible job losses being one potential cause of people getting into severe debt.

The Office for National Statistics said there were some factors that may mitigate the overall picture, mentioning the royal wedding and the extra bank holiday that came with it, plus the effects of the natural disaster in Japan.

It stated: "It is not possible to state precisely what the net overall impact of these special effects might have been," although it estimated these events may have trimmed service sector GDP by 0.4 per cent and production by 0.1 per cent.

Commenting on the GDP figures, Royal London Asset Management economist Ian Kernohan said the figures were around what the Bank of England had expected, although he noted the figures are frequently revised upwards or downwards by a substantial amount.

More importantly, he concluded, the "big picture" is one of gradual change that Britons may not enjoy the benefits of in the short-term.

He stated: "The UK economy is going through a major rebalancing, from private and public consumption to net exports and business investment, which will take several years to complete."

By James Francis
 

Consumers with strained household budgets may find they need debt management plans to get their finances on track as it becomes increasingly difficult to make ends meet amid rising food prices.

A study by Which? found nine out of ten consumers have noticed these going up, with 84 per cent saying they were worried about them.

Responses have included a third of people cutting their food spending, while 39 per cent are using discount supermarkets more.

But such measures are not enough for many, according to Which? executive director Richard Lloyd.

He said: "People are changing their behaviour and becoming more savvy shoppers when it comes to groceries, but there's only so much they can do to cut back on the basics."

And this means that for many shoppers, however hard they try the beast of food inflation is catching up on them, with potentially serious consequences for people already struggling to pay off their debts while also meeting rising bills.

Coming at a time when pay growth is running at low levels – and is frozen for most public sector workers – general inflation is still over twice the Bank of England's target rate and energy bills are rising, which may be a pressing issue for many.

And a survey by insolvency professionals body R3 has hinted at the depth of the problem, with 50 per cent of people living in England and Wales revealing they sometimes or often struggle to last financially from one payday to the next, while 43 per cent of Scots said they face the same problems.

Posted by Paul Thacker