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Britons are planning to save themselves money by cutting costs on things such as travel insurance, new research suggests.

American Express Insurance Services says that the rising cost of living means that people are starting to look for other ways to save money.

It conducted a survey of over 2,000 adults and asked them if they would cut costs by sacrificing payments towards financial services.

Nearly half said they would stop putting money into family savings plans and 24 per cent said they would not bother with travel insurance when going on holiday.

Chris Rolland, head of American Express Insurance Services, thinks it is "worrying" that Brits are willing to cut back on policies that are "designed to protect them during hard times".

"This may well be a false economy as people could end up paying out much more than they bargained for if something should happen," he added.

A survey conducted by the Bank of England recently revealed that 54 per cent of people questioned thought that interest rates would continue to rise in the UK over the next 12 months.

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